HOUSING AND FINANCIAL UPDATE FOR THE WEEK ENDING May 4th, 2018
The PCE index, the Fed's preferred inflation barometer, rose to 2% year-over-year in March. This is the biggest jump since Feb '17 and could pressure rates. The Fed voted unanimously not to raise policy rates at this month's FOMC meeting. However, they are expected to raise rates at the next meeting in June. The labor market shows no signs of slowing, as new applications for unemployment benefits last week fell to the lowest level since 1973.
Pending home sales were down 3% year-over-year in March, the 3rd straight month of annual declines. However, sales were up 0.4% compared to February. Increases in mortgage rates saw applications to buy a home drop 2% last week. However, purchase applications were still 5% higher than a year ago. Rising raw material costs are another way that inflationary pressures are starting to affect housing. Spending on new housing projects fell slightly in March.
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Because he was outstanding in his field.
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.
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