Market Trends this week in Real Estate

Please enjoy this quick update on what happened this week in the housing and financial markets. The Fed voted not to raise policy rates at this week's meeting, but did leave the door open for a hike before the end of the year. Odds currently favor December. Stocks rallied on the news, hitting new highs. Bonds also improved, which is supportive of lower mortgage rates or better loan pricing. The labor market remains strong, with jobless claims dropping to a two-month low. A strong labor market could play into the Fed's decision to raise rates this year.  Home builders are showing the strongest confidence in the housing market in 11 months, prompted by a surge in interest in new homes following a summer lull. New housing starts were down slightly in August after two months of increases. However, building permits were up, suggesting a rebound in the coming months. Housing inventory remains tight, although demand is strong. Home prices were up 0.5% from June to July, according to the Federal Home Finance Agency. A man goes to the lawyer and asks, "What's your fee?" The lawyer says, "Five hundred dollars for three questions." The man says, "Wow, so much! Isn't that a bit expensive?" The lawyer says, "Yes, I suppose it is. What's your third question?" 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.

Sincerely,

Christopher Gianino
Pinnacle Real Estate Advisor by Gershman Mortgage
Vice President
NMLS 252641
(314) 280-5662
cgianino@gershman.com
www.PinnacleRealEstateAdvisor.com