Market News 11-7-19
Mortgage Market Update
Continued progress in trade talks with China is helping stocks rally to record highs and driving bond yields higher. Increased bond yields are pressuring mortgage rates higher. U.S. service companies grew at a faster pace in Oct after sinking to a 3-yr low in Sept. Measures of sales, new orders and employment all rebounded from the previous month. Jobless claims fell more than expected last week. Along with last week’s payroll gains, this shows consistent strong labor market conditions and continued job growth.
Construction job openings increased in Sept on a year-over-year basis. The estimated number of job openings was 338,000. CoreLogic’s House Price Index for Sept showed house prices continue to go up, rising 3.5% year-over-year. Prices were 0.4% higher in Sept than in August. Down payment assistance on FHA loans increased from 30% in 2011 to 40% in 2018. Also, a new study debunks the myth that down payment assistance buyers are more likely to default.