Market News 02-01-19
Mortgage Market Update
Consumer confidence was down this month, likely affected by the government shutdown. Still, consumer spirits remain robust by historic standards. The Fed left policy rates unchanged at this week’s FOMC meeting. They also signaled that future rate hikes this year are less likely than previously forecast. Trade talks with China continue this week, though there is still little indication they are willing to bend to U.S. demands. The deadline for striking a deal is March 1.
Case-Shiller says home prices are rising at a slower pace. Even still, values increased 5.2% annually in November, only down from 5.3% in October. Pending home sales were down slightly in December. Although tight supply continues to play a role, a drop in mortgage rates is expected to help.New home sales were up 16.9% in November, vs 2.9% expected. The median sales price of new houses sold in November 2018 was $302,400.