Markets in a Minute For the Week Ending August 10, 2018
Although last week's jobs numbers were lower than expected, employment remains strong. Unemployment claims this week unexpectedly fell to 213,000. The strong labor market and robust economy are pushing up inflation, which could pressure rates higher. Import duties are also boosting price pressures. Inflation and strong labor market data have economists forecasting the Fed will raise rates twice more in 2018. Mortgage rates have already factored this in.
According to NAR, the median price for a single-family home nationwide is at a record $296,000. That's an increase of 5.3% year-over-year. Weekly mortgage application numbers were down 3% from the previous week. The drop is being blamed on tight inventory and rising home prices. CoreLogic's Home Price Index shows home prices rose by 0.7% in June over May. CoreLogic forecasts prices will increase 5.1% in the year going forward.
A committee is a group of people who individually can do nothing, but as a group decide that nothing can be done.
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.