HOUSING AND FINANCIAL UPDATE FOR THE WEEK ENDING MARCH 9th, 2018
For the Week Ending March 9, 2018
President Trump's proposed tariffs continue to spark talk of a trade war. This has caused uncertainty in markets, helping stabilize rates in the near term. Although jobless claims last week came in higher than expected, the labor market remains strong, supporting a likely Fed policy rate increase this month. The European Central Bank has shown confidence in the overseas economy and inflation. A strong global economy can pressure mortgage rates higher this year.
New home prices are likely to be pushed higher as builder costs increase. Lumber prices are up 25% over the same time last year. Homebuyers are demanding more from their homes. A 2-car garage, granite countertops, and walk-in closet are now often cited as "essential" home features. New tariffs on steel could drive up the cost of building apartment buildings and condos. Single-family homes, made of wood, are less likely to be affected.
I bought the world's worst thesaurus yesterday. Not only is it terrible, it's terrible.
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