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MarketMinute | Hope for the 2024 Housing and Finance Markets

Dec 29

4:56

AM

Category | Markets in a Minute

Investors are full of optimism for 2024 as the S&P 500 Index sits within striking distance of its first all-time high in nearly 2 years.

Initial jobless claims rose 218K last week, more than estimated but still consistent with a resilient labor market.

Inflation around the globe is slowing faster than expected. Experts say levels could return to normal in 2024 for the first time in 3 years.

Housing News

The FHFA reported home prices rose 6.3% year over year in October, faster than September’s 5.5% annual rate.

Pending home sales were unchanged for the month in November and 5.2% lower than the same time last year, according to NAR.

Fannie Mae forecasts a slow recovery for existing home sales next year after they hit a likely low point in October.

MarketMinute | Are Refinances Making a Comeback?

Dec 8

4:55

AM

Category | Markets in a Minute

Weakening demand spurred a 3.6% decline in factory orders in October, more than expected and the biggest monthly drop in more than 3 years.

Job openings slid to 8.7 million in October, below estimates and the lowest level since March 2021, signaling a loosening labor market.

Oil prices plunged to a 6-month low due to booming crude supplies. The drop helped push bond yields lower, supporting lower mortgage rates.

Housing News

Falling mortgage rates reignited refinancing activity. Refi apps were up 14% for the week and 10% year over year.

However, homebuyers are still battling high prices and low inventory. Purchase apps were down 0.3% for the week and 17% year over year.

Still, the housing market holds hope for 2024. Inventory is higher and more homes are under contract than at the end of 2022.

MarketMinute | Rates and inventory drive the housing market

Dec 1

4:14

AM

Category | Markets in a Minute

The Fed's preferred gauge of inflation as measured by personal spending increased 3.5% year over year in October, meeting expectations.

Consumer confidence rose in November after 3 straight monthly declines, though two-thirds of consumers think a recession is likely in 2024.

The Fed released data showing economic activity slowed in recent weeks as consumers pulled back on discretionary spending.

Housing News

New home sales fell last month, coming in below analysts' expectations. The drop was likely due to mortgage rates’ reaching a 2023 high.

Pending home sales also dropped in October, hitting a record low. Limited housing inventory added to the challenge of affordability.

However, mortgage rates have come down from October's highs. Purchase mortgage applications were up 5% for the week.

MarketMinute | Is The Fed Done Raising Rates?

Nov 17

5:59

AM

Category | Markets in a Minute

Consumer inflation came in better than expected for October, supporting expectations the Fed may be done raising rates to fight it.

Wholesale inflation also came in much lower than expected in October, reversing a 3-month trend and falling by the most since 2020.

New unemployment applications were up last week, and continuing claims rose to their highest level in almost 2 years.

Housing News

Homebuilder confidence weakened in November, as 36% of builders reported discounting prices an average of 6%.

Mortgage demand climbed to the highest level in 5 weeks after mortgage rates moved lower. Purchase applications rose 3% for the week.

Nearly 40% of recent homebuyers younger than 30 used a cash gift from family or an inheritance toward their down payment, according to Redfin.

MarketMinute | Mortgage App Volume Climbed As Rates Fell

Nov 10

3:10

AM

Category | Markets in a Minute

This week’s Fed member speakers tried to cool expectations for rate cuts and affirm their resolve to bring down inflation.

The segment of U.S. households with $1 million to $5 million in investable assets has jumped almost 60% over the past 16 years.

New unemployment claims were down last week. Layoffs remained low even as the still-strong job market showed some signs of cooling.

Housing News

Mortgage application volume climbed 2.5% last week as rates fell. Purchase apps rose 3% for the week, and refi apps were up 2%.

Inventory was up 0.7% for the week to 567K single-family homes listed for sale. Even in a tight market, 39% of those homes have had a price cut.

Of new homes completed last year, 19% had a garage that could hold 3 or more cars. Two-car garages were in 66% of new homes.