Market News 8-15-19
Mortgage Market Update
Stocks plummeted this week as 10yr Treasury yields fell below those for 2yr bonds. The resulting inverted yield curve could indicate a coming recession. Retail sales surged in July, which could ease worries of a pending recession. Inflation also picked up slightly in July as consumer prices increased. Despite the recent economic data showing the economy isn’t slowing as drastically as some expected, mortgage rates remain low and could go lower.
Falling mortgage rates support home builder confidence. According to NAHB, builder confidence for single-family homes rose one point to 66 in August. However, builders still are not producing enough homes to meet demand. Land and labor shortages contribute to higher costs, hindering new construction. Lower mortgage rates boost buyer demand, but inventory remains an issue. Newly listed properties were down 7% in July compared to a year ago.