Market News 8-29-19
Mortgage Market Update
Consumer confidence retreated a bit in August. However, it remained strong overall, offsetting a weakening in the outlook on economic conditions. Second quarter economic growth was revised down to 2% from 2.1%, in line with expectations. The economy grew at a 3.1% rate in the January-March quarter. The number of applications for unemployment benefits rose only slightly last week, pointing to sustained labor market strength despite slowing economic growth.
New home sales sank more than expected in July. Builders continue to face challenges, including land and labor shortages and higher material costs. Pending home sales were also down slightly in July. However, this result came after 2 months of sales gains and is likely due to lack of inventory. Home prices are still gaining nationally and rose 3.1% annually in June. Sustained low mortgage rates could help continue to drive prices higher.