Monday, March 21, 2016

this week in the housing and financial markets

what's happened this week in the housing and financial markets.

Recent economic data showed signs of underlying inflation. Combined with strong housing and labor markets, this could contribute to higher mortgage rates.

However, the latest Fed commentary urged caution, sharing intent to raise policy rates but not until later this year. This could help near term to keep rates steady.

Another factor that could help keep rates low is recent retail sales. February's weak sales could signal weakness in the economic outlook, helping rates.

Housing starts hit a 5 month high in February as builders ramped up construction. Single-family housing projects surged 7.2% to the highest pace in over 8 years.

Building permits were down slightly from January to February, but still up 6.3% over the previous year. Permits for single-family homes rose 0.4% to 731,000.

Builder confidence in housing remains strong, noting a continued demand for new inventory. Builders are struggling with enough labor and land to meet the demand.

O'Reilly is walking through a graveyard when he comes across a headstone with the inscription, "Here lies a politician and an honest man."
"Faith now," exclaims O'Reilly, "I wonder how they got the two of them in one grave!"

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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