Market News 03-29-19
Mortgage Market Update
Global economic concerns have sent bond prices soaring this week as investors move to safety. Improved bond prices have helped bring mortgage rates lower.The 4th quarter GDP number was reduced from 2.6% to 2.2%, signaling economic growth slowed even more than was initially reported.Consumer confidence slumped in March, missing forecasts. This was the 4th decline in 5 months and could contribute to slowing the economy.
Housing starts fell 8.7% in February, the most in 8 months. Construction of single-family homes dropped to more than a 1-1/2-year low.Home prices, however, continued to rise in January. Nationally, prices rose 4.3% year-over-year, which is near the long-term average pace.Despite lower mortgage rates, pending home sales dropped 1% in February compared with January. Further rate drops in March could bring more sales.