Week of September 24, 2018 Present Market Conditions
Attributed to Sam Khater, Chief Economist.
“The 30-year fixed-rate mortgage increased once again to its highest level since May. Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers,” he said. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions.”
Added Khater, “Amidst this four-week climb in mortgage rates, the welcoming news is that purchase applications have risen on an annual basis for five consecutive weeks. However, given the widespread damage caused by Hurricane Florence in the Carolinas, the next few months of housing activity will likely be somewhat volatile.”
Expectations
This week brings us some very important economic data to digest. Wednesday kicks things off with another Fed meeting. A 25 basis point increase in the federal funds rate is fully expected. Wednesday also brings us New Home Sales information. The Durable Goods Orders data will be brought to us on Thursday. This is always an important economic indicator. Friday finishes up the week with the Fed’s favored inflation indicator with the release of the Core PCE price index.
Guidance
It’s a great time to be in the market for a mortgage! With rates still very low and the economy heating up, you’ll want to make sure you take advantage of this great time to buy!
