Market News 12-14-18
Mortgage Market Update
The Fed’s plans to continue raising policy rates next year may be on hold. However, a policy rate hike at next week’s FOMC meeting is still likely. The core consumer price index, which is a key measure of inflation, picked up in November. Inflation could put pressure on mortgage rates to move higher. Unemployment claims fell to a near 49-year low last week. The drop could ease concerns about a slowdown in the labor market and economy.
Data for November shows mortgage applications for newly constructed homes were down 14% from October. Applications were also down 11% year over year. Freddie Mac is helping to lower utility bills for hundreds of thousands of low- and middle-income renters. It’s part of their 3-year “Duty to Serve” plan. Freddie and Fannie Mae have announced a nationwide suspension of eviction lockouts on foreclosures for the holiday season, from Dec. 17 through Jan. 2.