Market News 8-1-19
Mortgage Market Update
The Fed meeting ended on Wednesday with a 0.25% cut to its policy rate for the first time since 2008. Mortgage rates were stable on the news. Stocks declined after the Fed announcement as many traders were expecting a drop of 0.50%. Falling stock prices can be good for mortgage rates. Comments from the Fed Chairman make future rate cuts less certain. Prior expectations were for continued cuts through the end of the year.
A Realtor.com survey found 42% of spring home shoppers were first-time buyers. Those who hadn’t yet purchased most commonly cited affordability as an issue. Pending home sales rose in June, compared both to the previous month and last year. Economists credit favorable economic conditions and low rates. According to Case-Shiller, May’s national home prices realized a 3.4% monthly increase. Rising prices and low rates should continue to motivate buyers.