Tulips in the sun in front of house

Daily Rate Update: April 26th-30th

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Tuesday – April 27, 2021

Home prices continue to rise due in part to low inventories of listings on the market along with pent-up demand. The S&P Case Shiller 20-City Home Price Index jumped 11.9% annually in February, up monthly by 1.2% from January. The National Index rose 12% year over year, the largest gain since February 2006. A spokesperson from Case-Shiller said, “These data remain consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes.”

In the same theme, Redfin also reports that home prices are on the rise as buyers return to the cities. Redfin reports that prices of urban single-family homes rose almost 20% year over year for the period ended April 4. Also, urban condo sales have risen nearly 30% annually, more than any other home type. “Now that Americans have had a year to consider what the pandemic and its aftermath mean for their lifestyles, we’re seeing a lasting preference for single-family homes—but rural and suburban settings are no longer as popular as they were at the start of the pandemic,” said Redfin economist Taylor Marr.

Consumer confidence surged this month due in part to a strengthening economy as well as a rebounding job market. The Conference Board reports that its Consumer Confidence Index jumped to 121.7 after the big gain seen in March. The report showed that consumers claiming business conditions are “good” increased while consumers saying jobs are “plentiful” increased from 26.5% to 37.9%. “Consumer confidence has rebounded sharply over the last two months and is now at its highest level since February 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

Courtesy of Mortgage Market Guide 

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Monday – April 26, 2021

The two-day Fed meeting kicks off this week on Tuesday and ends Wednesday with the 2:00 p.m. ET release of the monetary policy statement. There is a zero percent chance of a hike to the short-term Fed Funds Rate which is currently at just .125%. The Fed will most likely continue to signal that the economy is improving while it will keep its current asset purchase program at current levels. Fed Chair Powell will hold a press conference at 2:30 following the release.

Along with the Fed meeting this week, heavy added Treasury supply, a slew of economic data, earnings numbers and new tax proposals are some obstacles that investors will need to hurdle this week. Earnings season ramps up with the tech monsters Amazon, Microsoft, Google and Apple all reporting this week. This morning, March Durable Orders disappointed rising just 0.5% versus the 2% gain expected. The rest of the week features housing, Q1 2021 Gross Domestic Product, manufacturing, Core PCE and consumer spending and consumer attitudes.

Courtesy of Mortgage Market Guide 

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