Market News 01-25-19
Mortgage Market Update
The government shutdown continues to impact markets, with delayed economic reports keeping investors in the dark. Mortgage rates are unaffected so far. Plenty of global economic reports are available to cause concern for traders, though. China and Europe both show signs of slowdown. Jobless claims fell to a 49-year low last week. However, claims for several states were estimated and may be overstating the health of the labor market.
Existing home sales fell by 6.4% in December, an unusually large drop likely caused by October’s rapid rate increase. Rates have since retreated. The supply of homes for sale rose more than 3% compared with a year ago. Low supply has been stifling sales since last spring. Unconventional mortgages are making a comeback. Lenders issued $34 billion in non-QM loans in the first 3 quarters of 2018, a 24% increase year-over-year.