Market News 1-23-2020
Mortgage Market Update
Stocks across the globe are taking a hit this week as investors react to mounting concerns about a deadly virus in China and its effect on travel and spending. President Trump is threatening more tariffs on European auto imports if the bloc doesn’t agree to a trade deal. Trump has delayed imposing these tariffs a number of times. Jobless claims rose slightly last week to 211,000 but were still lower than expected. The labor market continues to tighten, even as job growth is slowing.
New home builders can’t keep up with demand. Even with an above average pace of construction, it would take 4-5 years to get back to a balanced market. Existing home inventory is just as bad, as supply in December hit the lowest level since tracking began in 1982. Current supply would sell out in just 3 months. The huge imbalance between supply and demand contributed to a jump in prices. The median home price in December was up 7.8%, the biggest annual increase in almost 4 years.