Market News 05-03-19
Mortgage Market Update
The Fed’s preferred inflation gauge, the core personal consumption expenditures index, was flat for the month of March and up only 1.6% year-over-year. The lack of inflation helped the Fed keep policy rates unchanged this week at their FOMC meeting. Speculation is that we won’t see a rate increase this year. Unemployment applications remained at higher levels last week, leaving the forecast rate at 3.8% for the month of April.
Thanks in part to a recent dip in mortgage rates, pending home sales jumped 3.8% in March. However, sales were down 1.2% compared to March of 2018. Home prices are still rising, but at a slower rate in February than in January. Prices rose 4% year-over-year in February compared to 4.2% in January. Luxury home sales appear to be in a bit of a slump. Sales of homes listed at $2 million and above fell 16% in the first quarter as supply rose 14%.