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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%.

MarketMinute | Signs of hope for a stabilizing housing market?

Mar 17

4:23

AM

Category | Markets in a Minute

Inflation fell for the 8th straight month in February, reaching the lowest level since September 2021. It remains higher than the Fed's 2% goal.

Although more jobs were created in February than expected, wage growth came in slightly slower, which helps the outlook of reduced inflation.

Retail sales fell in February after surging in January, suggesting that consumer spending is slowing down in the face of high inflation.

Housing News

Single-family homebuilding and permits for future construction rebounded in February, offering hope the housing market is stabilizing.

Home builder confidence also improved for the 3rd straight month, despite high construction costs.

Purchase apps rose 7% last week. We may see an even bigger increase next week after this week’s rate drop.

MarketMinute | What might a return to normalcy look like?

Mar 10

4:34

AM

Category | Markets in a Minute

In his semiannual testimony before Congress this week, Fed Chair Powell signaled a possible higher-than-expected Fed rate hike in March.

Job openings declined slightly in January but still far outnumber available workers, as the labor picture remains tight.

Labor market strength and strong economic and consumer spending data have pressured mortgage rates higher recently.

Housing News

Despite rising interest rates, mortgage application volume improved 7.4% last week. Purchase apps rose 7%, and refi apps grew 9%.

Market analysis from Black Knight suggests purchase activity could be nearing the bottom before a slow and choppy return to normalcy.

Home affordability is a growing concern with just 10% of homes sold in Q4 2022 selling under $300K compared to 41% in Q4 2019.

MarketMinute | Prices and Pending Sales are on the Rise!

Mar 3

3:44

AM

Category | Markets in a Minute

January's manufactured capital goods orders grew by the most in 5 months, ending 2 straight months of declines.

Consumer confidence declined in February, as rising prices and growing recession concerns outweighed the near-term strength of the economy.

The PCE, a key inflation measure, rose more than expected in January, indicating the Fed has more work to do to bring down prices.

Housing News

Pending home sales jumped 8.1% in January, improving for the second straight month, as mortgage rates fell from 2022 highs.

The FHFA reported home prices advanced 6.6% in 2022, showing prices still increased, though at a slower rate.

Mortgage application volume was 44% lower than the same week one year ago and is now at a 28-year low due to higher rates in February.

MarketMinute | Good News for First-time and Low-income Homebuyers

Feb 24

9:34

AM

Category | Markets in a Minute

The New York Fed reports consumer debt hit a new record at the end of 2022, while delinquency rates rose for several types of loans.

Minutes from last month's Fed meeting showed most officials supported a quarter point hike though "a few” favored a bigger half point hike.

Fed officials stated the signs of slowing inflation are not enough to counter the need for more interest rate increases.

Housing News

Existing home sales dropped to the lowest level in more than 12 years in January. The pace of decline slowed, though, raising optimism for a shift.

Home purchase applications tumbled last week to the lowest level since 1995, as the highest mortgage rates in 3 months discouraged buyers.

Some good news for first-time and low-income buyers: The FHA announced cuts to its mortgage insurance premiums starting March 20.