Markets in a Minute - For the Week Ending October 5, 2018
The non-manufacturing services sector expanded last month at the fastest pace on record. The news helped trigger this week's rise in mortgage rates. Jobless claims last week fell to a near 49-year low, pointing to sustained labor market strength. The strong labor market could contribute to further rate increases. The sudden rise in bond yields this week triggered higher mortgage rates. It's likely bond yields will continue to advance heading into 2019.
Year-over-year mortgage application volume was down 15% last week. However, volume was unchanged from the previous week. Builders say new tariffs are adding as much as $9,000 to the price of a new home. Builders are also plagued by labor shortages and increased building regulations. As home prices rise, so do rents. In some cities, renters have turned to rent strikes to compel landlords to negotiate rents and improve maintenance.
I hung a picture up in my office the other day. Yup, I nailed it.
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.