It’s time for your weekly look at what’s happening with rate movement, the economy, and the housing market. Watch to the end for a quick smile.
Rate Environment
Mortgages are holding out in the middle range, but the great news is that rate volatility is low.
The Economy
The government shutdown continues to impact markets, with delayed economic reports keeping investors in the dark. Mortgage rates are unaffected so far.
Plenty of global economic reports are avaible to cause concern for traders, though. China and Europe both shows signs of slowdown.
Jobless claims fell to a 49-year low last week. However, claims for several states were estimated and may be overstating the health of the labor market.
Housing News
Existing home sales feel by 6.4% in December, an unusually large drop likely caused by October’s rapid rate increase. Rates have since retreated.
The supply of homes for sale rose more than 3% compared with a year ago. Low supply has been stifling sales since last spring.
Unconventional mortgages are making a comeback. Lenders issued $34 billion in non-QM loans in the first 3 quarters of 2018, a 24% increase year-over-year.
See you again next week!
**Rate movements and volatility are based on published, aggregated national averages and measured from the previous to the most recent mid-week daily reporting period. These rate trends can differ from our own and are subject to change at any time.