Market News 01-11-19
Mortgage Market Update
The government shutdown, in its third week, hasn’t yet shown signs of affecting the economy. However, it has impacted some mortgage programs like USDA. After a dismal December, stocks are rebounding, helped in part by progress in U.S./China trade talks. These improvements have pressured mortgage rates. Although recent concerns about the economy have surfaced, the job market remains strong. Jobless claims fell more than expected last week to 216,000.
The recent drop in mortgage rates has sparked a jump in applications. Mortgage applications were up 23.5% from the previous week. Just over 10% of agents surveyed by NAR said the shutdown was having an impact on their clients. Gov’t and non-gov’t employees alike have been affected. More first-time buyers are turning to their parents for help with down payments. A recent HUD report shows 26% of FHA borrowers got assistance from a relative.