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MarketMinute | The Fed Has Spoken Again

May 5

10:13

AM

Category | Markets in a Minute

The Fed raised its policy rate by 0.25% this week. This 10th consecutive hike puts the rate above 5% for the first time since 2007.

Job openings fell more than expected in March to the lowest level in nearly two years, a sign the job market is loosening.

Applications for unemployment benefits also rose by the most in six weeks, while continuing claims fell by the most since July.

Housing News

Purchase mortgage applications dropped 2% last week and were down 32% from a year ago. Tight inventory continues to hamper sales.

However, mortgage applications to refinance were up 1% on the week, despite being down 51% from the year before.

Overall construction spending was up in March, although single-family homebuilding remained depressed amid higher mortgage rates.

MarketMinute | How do consumers really feel about the housing market?

Apr 14

4:22

AM

Category | Markets in a Minute

The Consumer Price Index's annual inflation rate dropped for the 9th consecutive month in March, reaching its lowest level since May 2021.

Wholesale inflation also fell in March, hitting its lowest annual level since January 2021. Slowing inflation can be good for rates.

Newly released minutes from the Fed's last meeting indicated officials appear on track to raise policy rates one more time in May.

Housing News

Purchase mortgage applications rose 8% last week, as buyers took advantage of a dip in interest rates.

Realtor.com reports a 44% increase in active listings over last year, though the rate of growth had slowed with last week’s report.

Despite moderating rate increases, only 20% of consumers surveyed by Fannie Mae in March thought now was a good time to buy a home.

MarketMinute | Can rate relief overcome inventory woes?

Apr 7

4:04

AM

Category | Markets in a Minute

Private payrolls grew less than expected in March. ADP reported an increase of 145K, down significantly from 261K in February.

The Fed's key inflation gauge rose 0.3% in February. The less-than-expected growth provides hope the Fed may soon pause policy rate hikes.

Job openings fell below 10 million in February for the first time in 2 years, a sign the Fed’s efforts to slow the labor market may be working.

Housing News

Home prices rose in February after 7 straight monthly declines, according to Black Knight. Lower rates and tight inventory boosted prices.

Tight inventory led to a 4% drop in purchase mortgage apps last week, even though interest rates fell.

New listings were down 20% year over year in March. Total inventory was about half of what it was in March 2019, just before the pandemic.

MarketMinute | Check out the reports of rising home sales and prices!

Mar 31

1:15

AM

Category | Markets in a Minute

Last week's jobless claims came in at 198K, higher than expected and up 7K from the previous week.

The economy grew 2.6% during the 4th quarter. This rate was slower than both the 2.9% estimate and last month’s 2.7% growth.

The "banking crisis" that drove rates down a couple of weeks ago seems to have stabilized, with no new bank failures reported recently.

Housing News

January’s FHFA House Price Index showed prices for homes purchased with a mortgage grew 0.2% for the month and 5.3% for the year.

After a sharp gain in January, pending home sales rose for the 2nd straight month in February, despite higher mortgage rates and tight inventory.

The recent drop in mortgage rates boosted mortgage applications this week. Purchase apps rose 2%, and refi apps were up 5%.

MarketMinute | The markets don't believe the Fed!

Mar 24

3:45

AM

Category | Markets in a Minute

The Fed raised rates by 0.25% this week, calling for more hikes to come. Despite this, markets anticipate the Fed will have to cut rates by July.

Unemployment applications unexpectedly declined for a 2nd week. The job market remains tight with employers reluctant to lay off workers.

Short-term inflation expectations fell in March to the lowest level in 2 years, but consumer sentiment still fell due to persistently high prices.

Housing News

Existing home sales rose 14.5% in February for the 1st monthly gain in 12 months and the largest increase since July 2020.

The median price of an existing home sold in February was $363K. This was a 0.2% annual decline and the first drop in over a decade.

Purchase mortgage applications increased 2% last week as the average contract interest rate fell. Refi apps increased 5%.