Market News 10-31-19
Mortgage Market Update
The Fed cut policy rates by 0.250% this week, the 3rd cut in as many meetings. A Fed rate cut doesn’t directly impact mortgage rates, other than HELOCs. Weekly jobless claims rose more than expected last week. The numbers still support a solid labor market. Consumer spending increased marginally in September, while wages were unchanged. Inflation was also muted, helping to keep mortgage rates low.
Home prices rose 3.2% in August, up from the 3.1% gain in July, according to Case-Shiller. Prices in the nation’s 10 major cities rose 1.5%. Pending home sales rose 1.5% in September over August, the second straight month of gains. Sales were 3.9% higher than in September 2018. Homeownership rates rose in the 3rd quarter to 64.8%, up 0.7% from the 2nd quarter. The uptick is attributed to low mortgage rates.