Market News 06-7-19
Mortgage Market Update
Mortgage rates continue to improve as mortgage bonds reach levels not seen since 2017. The outlook remains good that rates could go even lower this year. As U.S. trade tensions have increased, so have concerns about a global economic slowdown, helping mortgage rates remain low. The Fed is starting to signal it is open to easing monetary policy. Recent comments have markets looking for Fed policy rate cuts later this year.
Construction spending was flat in April, but home construction spending declined for the 4th straight month. Kitchen remodel expenditures jumped 27% in the past year. The median cost for upgrades was $14,000, according to a survey of over 140,000 homeowners. Flipped homes, or homes resold within 12 months after purchase, made up 7.2% of all transactions in the first quarter, the biggest share since the start of 2010.