Market News 9-19-19
Mortgage Market Update
Mortgage rates were not directly affected by the Fed policy rate cut this week. Mortgage rates are based on markets that are influenced by but not controlled by Fed policy. An attack on Saudi Arabia’s oil production facilities reduced output, driving up the cost of oil. Consumers are seeing higher gas prices at the pump. Manufacturing output increased solidly in August, but the outlook for factories remains weak amid trade tensions and slowing global economies.
Homebuilder sentiment surged to the highest level of the year in September. However, rising rates and the trade war with China are causing concerns. Housing starts hit a 12-yr high in August. Both single- and multi-family home construction increased, boding well for declining inventories. Existing home sales rose to a 17-month high in August. It was the 2nd straight month of gains, likely helped by August’s low mortgage rates.