Market News 05-31-19
Mortgage Market Update
Economic growth in Q1 accelerated, but momentum is slowing. Inflation pressures were much weaker than initially thought, supporting lower rates. Consumer confidence rose in May to its highest level since December 2000, thanks in large part to a healthy job market and rising wages. However, concerns over a slowing economy and inverted bond yield curves have economists speculating that we could see a recession in the upcoming year.
According to the FHFA, home prices rose 5.1% in Q1 from a year earlier. This is slower growth than in recent years but still a historically healthy pace. Case Shiller also reported home prices rising at a slower pace, despite falling mortgage rates. This is good news, though, for buyers entering the market. Pending home sales fell unexpectedly in April. Compared to a year ago, sales were down 2.0%, marking the 16th straight month of annual decreases.