Please enjoy this quick update on what happened this week in the housing and financial markets.
The Fed left policy rates unchanged at this month’s FOMC meeting, but left the door open for future increases. The Fed’s next FOMC meeting is in June.
Consumer spending has slowed recently, and the economy stalled in the first quarter with just 0.5% increase to the GDP. This supports low mortgage rates.
The bright spot in the economy is the strengthening labor market. This week’s initial jobless claims continued to cling near a four-decade low at 257,000.
New home sales unexpectedly fell in March, but the decline was concentrated in the West region. The Midwest and South actually saw sales rise in March.
Pending home sales were up 1.4% in March, the highest pace in nearly a year. Demand remains strong with low interest rates helping home affordability.
Home prices continued to rise in February according to the Case-Shiller Index. Tight inventory remains a concern and is helping to keep prices rising.
A salesman dropped in to see a business customer. Not a soul was in the office except a big dog emptying wastebaskets. The salesman
stared at the animal, wondering if his imagination could be playing tricks on him.
The dog looked up and said, “Don’t be surprised. This is just part
of my job.”
“Incredible!” exclaimed the man. “I can’t believe it! Does your boss
know what a prize he has in you? An animal that can talk!”
“Please don’t!” said the dog. “If he finds out I can talk, he’ll make me
answer the phone, too!”
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.