Market News 05-10-19
Mortgage Market Update
Tweets by President Trump reignited investor concerns over the trade talks with China. Stocks dropped from recent highs as investors’ anxiety increased. Although the trade dispute with China has not directly helped mortgage rates, newly proposed tariffs could hamper global economic growth, helping rates. Low inflation has offset strong employment, helping keep rates low. Although lots of jobs are being
created, wages aren’t rising fast enough to cause inflation.
A remodeling labor shortage continues to delay housing projects, according to NAHB. The highest demand is for carpenters, bricklayers, and electricians. Homeowners are showing more love for their front yards in a recent trend, carving out spots in lawns and front porches to mingle with neighbors and relax. High home prices and strong demand have today’s youngest homebuyers pouring into smaller cities, where prices are generally more affordable.