Market News 06-14-19
Mortgage Market Update
Both wholesale and consumer inflation data came in as expected this week, showing inflation is not a concern to pressure rates higher in the near future. The Fed meets next week for its FOMC meeting. No rate changes are expected, but investors will be looking for signs of rate cuts to come in July. The labor market appears to be losing steam. Last week’s jobs data came in weaker than expected, and jobless claims also rose unexpectedly last week.
Mortgage applications surged last week as rates dropped. Applications were up 26.8% in just one week, and volume was 41% higher year-over-year. Refinances led the application surge, jumping a remarkable 47% week-to-week. Purchase applications increased 10% weekly and annually. Due to tax reforms, renters paid an average of $2,716 less in taxes last year, making it easier to save toward a possible down payment on a home.