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MarketMinute | Mortgage Rates and Prices Rising At The Same Time?

Oct 14

6:34

AM

Category | Markets in a Minute

Both wholesale and consumer inflation reports showed inflation continued to rise in September despite multiple Fed rate increases.

The labor market remains strong. Nonfarm payrolls increased more than expected in September, and unemployment fell to 3.5%.

Jobless claims were up slightly last week. Claims reached their highest level since August but still showed a stable labor market.

Purchase mortgage applications dropped 2% for the week. The average purchase loan fell below $400K for the first time since December 2021.

Higher mortgage rates are creating an appetite for adjustable rate mortgages. ARMs represented about 12% of last week's applications.

Despite higher mortgage rates, home prices remain higher compared to a year ago and are unlikely to fall steeply due to persistently tight supply.

MarketMinute | How are home prices looking?

Oct 7

1:22

AM

Category | Markets in a Minute

Manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September. New orders contracted amid aggressive Fed rate increases.

The services industry sector slowed modestly in September, suggesting underlying strength in the economy despite rising interest rates.

Fed officials this week continued to spread the message that Fed rate policy needs to remain aggressive until inflation is under control.

Purchase mortgage applications fell 13% for the week and were a steep 37% lower year over year.

September new for-sale listings fell 18.9% year over year. During the year ending September 30, 37.6% of listings were priced from $200K to $400K.

Home prices remain higher than a year ago, and it is unlikely they will fall too steeply, according to recent data from Black Knight.

MarketMinute | New Home Sales Surprised In August

Sep 30

3:55

AM

Category | Markets in a Minute

Orders for capital goods increased in August, suggesting businesses remained keen to invest in equipment despite higher interest rates.

Consumer confidence rose for a second straight month in September, supported by a resilient labor market and falling gasoline prices.

The 10-year Treasury yield topped 4% this week for the first time in more than a decade, signaling that rates may not have peaked yet.

Home prices in July were still higher than they were a year ago but cooled significantly from June gains, according to the Case-Shiller Index.

Sales of new homes unexpectedly rose almost 29% in August, the fastest pace of sales since March and a break from the recent downturn.

Pending home sales fell for the third straight month in August, weighed down by soaring mortgage rates and high home prices.

MarketMinute | Is For-Sale Inventory On The Rise?

Sep 9

5:16

AM

Category | Markets in a Minute

The service industry picked up in August for the 2nd straight month, reinforcing the view that the economy is not yet in a recession.

Last week’s jobless claims hit a 3-month low, underscoring the robustness of the labor market despite the Fed’s rate increases.

Comments from multiple Fed officials showed they remain optimistic about the economy while still committed to battling inflation.

With rates reaching highs last seen in June, purchase mortgage apps were down slightly for the week and 23% lower than a year ago.

For-sale inventory is on the rise but not yet to pre-pandemic levels. August’s total active listings were 7.7% lower than in August 2020.

Homeowners are spending a median of $9,000 on bathroom renovations, according to a recent survey. That’s 13% higher than last year.

MarketMinute | How many sellers chose FSBO in 2021?

Sep 2

6:36

AM

Category | Markets in a Minute

Consumer confidence rebounded more than expected in August after 3 straight monthly declines, a positive sign for consumer spending.

Last week’s jobless claims fell to their lowest level since June, signaling labor market resilience amid a slowing economy.

Fed comments from Jackson Hole last week have led markets to expect a larger policy rate hike in September.

Purchase mortgage applications dropped 2% for the week and were 23% lower year over year. Refi apps also fell.

Despite talk of falling home prices, June’s prices were 18% higher than in June 2021, according to Case-Shiller.

The NAR reports FSBOs made up only 7% of home sales in 2021—the lowest share since 1981—even in the red-hot market.