Market News 9-26-19
Mortgage Market Update
Consumer confidence fell sharply in September, the biggest drop in 9 months. The escalation in trade tensions with China may have contributed to the decline. U.S. business investment contracted more sharply than estimated in the 2nd qtr. The data cast a shadow on the economy, increasing concerns of a recession. Jobless claims increased to a 3-week high of 213,000. However, the 4-week average, a less volatile measure, fell to 212,000, the lowest since July.
According to the FHFA, July’s single-family home prices came in 5% higher than the previous year. The increase marked slower but still strong growth. Pending home sales were up in August, 1.6% over July and 2.5% year-over-year. Lack of available inventory is still being blamed for holding back sales. New-home sales rebounded 7% in August over July, flirting with a 12-year high, and were up 18% year-over-year. Low mortgage rates likely played a role.