Market News 03-22-19
Mortgage Market Update
The Fed did not raise policy rates at this month’s FOMC meeting. Based on Fed projections, we likely won’t see another Fed rate hike until 2020. Jobless claims fell to 221,000 last week. That’s a 4-week low, as the labor market tightens further following the 5-week government shutdown. Inflation continues to hover below Fed expectations, contributing to concerns about a slowing economy. Low inflation can help keep mortgage rates low.
Home builders remain optimistic about the housing market as mortgage rates continue to fall. Lower rates can make mortgage payments more affordable. Mortgage applications rose 1.6% over the previous week, helped by lower rates. The average loan size set a record for the 3rd week in a row, reaching $327,500. A recent report shows that staging not only results in a quicker sale but also may increase a home’s value. The most important room to stage? The living room.