Market News 04-12-19
Mortgage Market Update
The consumer price index rose less than forecast in March. A key measure of inflation, this reading supports the Fed’s decision not to raise rates this year. Producer prices increased by the most in 5 months in March. However, underlying prices remained soft, an indication of tame inflationary pressures. Jobless claims fell to a 49-1/2-year low last week. Sustained labor market strength could help temper concerns of an economic slowdown.
Although down from January, construction job openings were higher year-over-year in February, highlighting the challenge of labor availability for builders. Housing sentiment surged in March, with sellers the most optimistic. Consumers who say it’s a good time to sell increased 13% from February, up 4% from 2018. CoreLogic says mortgage delinquencies in January were the lowest for that month in 20 years. Serious delinquencies dropped to 1.4% from 2.1% in 2018.