• More new jobs than forecast were created in December. However, wage growth was lower than expected, helping mortgage rates.
  • Inflation continued to slow in December, signaling prices have peaked and giving markets hope the Fed will slow the pace of interest rate hikes.
  • Weakening demand in December led to the first services industry contraction in more than 2-1/2 years, signaling a slowing economy.

Housing News

  • Mortgage applications rose 1.2% last week over the previous week, although purchase applications were down 1% on the week.
  • NAR's Nadia Evangelou, director of forecasting, predicts mortgage rates likely will settle below 6% and experience less volatility this year.
  • In December, 21% of survey respondents told Fannie Mae now is a good time to buy a home, up from 16% in November. 

Market Minute Report - Mortgage News