Market News 7-26-19
Mortgage Market Update
Expectations are that the Fed will cut policy rates at next week’s FOMC meeting. There’s speculation the cut will be anywhere from 0.25% to 0.50%. While the Fed can adjust policy rates, it doesn’t control mortgage rates. Still, the Fed cut should help to keep mortgage rates low overall. Despite concerns of a global economic slowdown, stocks continue to reach new highs. Strong corporate earnings and cheap borrowing costs fuel the fire.
Existing home sales were down 1.7% in June, which was more than expected. Tight inventory continues to play a role in slowing down sales. Sales of new single-family homes were up 4.5% year-over-year in June, with a monthly increase of 7.0%. A rebound in the western region of the U.S. led the charge. The 5 most common home inspection issues involve the roof (19.7%), electrical (18.7%), windows (18.4%), gutters (16.9%) and plumbing (13.6%).