Market News 2-6-2020
Mortgage Market Update
Manufacturing activity rebounded in January, with the ISM index at its highest level since July. The improvement likely reflects ebbing trade tensions with China. Fears of a slowdown in the global economy caused by the coronavirus are dissipating. Stocks have recovered, and rates are creeping up on new investor optimism. New orders for U.S. made goods saw their highest increase in nearly 1-1/2 yrs in December. The data points to an improving economy, which could pressure rates higher.
Construction spending dipped in December. However, residential construction spending gained 1.4% as homebuilders grew more confident. Realtor.com predicts millennials’ share of mortgage originations will surpass 50% for the first time this spring, with Gen X at 32% and baby boomers at 17%. Home design and decorating fads that are fading fast include macramé, all-gray interiors, shiplap, tribal prints, concrete countertops, and accent walls.