Daily Rate Update: September 10th-14th

posted in: Uncategorized | 0

Friday – September 14, 2018

Retail Sales disappointed in August, up just 0.1% from July. This was the smallest gain in six months. However, July’s figure was revised higher from 0.5% to 0.7%. Consumers cut back on spending for cars and clothing, whiles sales were led by non-store retailers and from receipts at gasoline stations. On an annual basis, Retail Sales were up 6.6% from August 2017.

There are signs that China’s economy is slowing, materially, which could help further the negotiations regarding tariffs. China’s Stock market, the Shanghai Index, is down 20% in the last year and in bear market territory.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – September 13, 2018

The Consumer Price Index (CPI) for August rose 0.2%, in line with estimates as higher costs for gasoline and rents were offset by declining costs for healthcare and apparel. On an annual basis, CPI fell to 2.7% from 2.9% in July while the Core CPI fell to 2.2% from 2.4%. The data also accelerated Stock futures as lower inflation data could somewhat slow interest rate hikes in the future.

Mortgage rates rose for the third straight week due in part to strong job and consumer credit growth in August. Freddie Mac reports that the 30-year fixed-rate mortgage rose to 4.60% with an average 0.5 in points and fees. Rates had stalled mid-summer but moved in a slightly higher pattern though they remain historically attractive. Freddie Mac said, “Overall, this spectacular stretch of solid job gains and low unemployment should help keep homebuyer interest elevated. However, mortgage rates will likely also move up, as the Federal Reserve considers short-term rate hikes this month and at future meetings.”

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – September 12, 2018

Inflation at the wholesale level declined in August from July due in part to lower costs for food and a range of services. The Producer Price Index (PPI) fell 0.1% versus the 0.2% expected, while the Core PPI, which strips out volatile food and services, fell 0.1%, below the +0.2% expected. On a year-over-year basis, both the PPI and Core PPI were below estimates. The more closely watched Consumer Price Index will be released tomorrow showing data on consumer inflation.

The Mortgage Bankers Association reports that its Market Composite Index, a measure of total mortgage loan application volume, fell 1.8% for the week ended September 7, 2018. The refinance index fell 6% while the purchase index increased 1%. The 30-year fixed-rate mortgage increased to 4.84% from 4.80%, with an average 0.46 in points. The 30-year fixed-rate mortgages with jumbo loan balances rose to 4.72% from 4.67%, with points increasing to 0.47.

Middle-class incomes rose to an all-time high in 2017 while the official poverty rate decreased 0.4% due in part to a strong U.S. economy. Middle-class incomes rose to $61,372 in 2017, an increase of 1.8% from 2016, which was the third annual increase, reports the U.S. Census Bureau. The nation’s official poverty rate in 2017 was 12.3%, with 39.7 million people in poverty. A strong economy lifts all boats.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – September 11, 2018

Small business optimism soared in August to record high levels as the U.S. economy continues to grow. The NFIB Small Business Optimism Index rose to 108.8 in August, the highest in its 45-year history and above the previous record of 108.0 recorded in July 1983. The report showed that job creation plans and unfilled job openings both set new records in August. “I’m hearing everyday from small business owners that business is booming. As the tax and regulatory landscape changed, so did small business expectations and plans,” said NFIB President and CEO Juanita D. Duggan.

The strong economy and labor market is also helping U.S. homeowners remain current on their mortgages, though natural disasters in some areas have caused an uptick in delinquencies. Data analytics firm CoreLogic reports that the 30 days or more delinquency rate for June 2018 was 4.3% as opposed to 4.6% seen in June 2017. That delinquency rate is near a 10-year low. CoreLogic says, “The continued improvement in mortgage performance bodes well for the health of the U.S. market in 2018.”

Hurricane Florence is bearing down on the East coast mid-Atlantic states. It has been upgraded to a Category 4 Storm and is expected to gain even further strength. South Carolina, North Carolina and Virginia state officials have ordered the evacuations of 1 million people from the areas that will be impacted. The storm is expected to make landfall Thursday night. The storm winds are now at 130-miles-per hour. The storm could be upgraded to Category 5, the highest classification, meaning the area could see sustained winds exceeding 156-milers-per-hour.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Monday – September, 10, 2018

Due in part to the rise in home prices over the past few years, tappable homeowner equity rose to its highest level ever in the second quarter of 2018. Data and analytics firm Black Knight, Inc. reports that tappable homeowner equity rose by $256 billion in the second quarter of 2018 to a total gain of $636 billion for 2018. There is now a little over $6 trillion total in tappable homeowner equity across the nation. Black Knight went on to reveal that some 44 million homeowners have equity that could be tapped out via cash out refinances or home equity lines of credit.

Fannie Mae released its Home Purchase Sentiment Index for August, which rose for the first time since May, up 1.5 points to 88. The report showed that the increase in the index was attributed to increases in the job- and income-related components. The net share of Americans who say they are not concerned about losing their job rose 15 percentage points to 80% after last month’s steep decline, reaching a new survey high. The net share of those who say their household income is significantly higher than it was 12 months ago rose 1 percentage point to 22%, reaching a new survey high for the second consecutive month. On the housing front, the report went on to reveal that the net share of Americans who say it is a good time to buy a home fell 3 percentage points from July to August to 21%.

U.S. Stock markets are trying to rebound from last week’s decline spurred on by trade tensions with China along with NAFTA issues with Canada. The closely watched S&P 500 Stock Index recently hit a record closing high due in part to a strong economy, a tight labor market, relatively low interest rates and sky-high consumer confidence. In addition, earnings season produced solid gains as after-tax profits across the U.S. jumped 16% in the second quarter of 2018 from the same period in 2017.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp