Economic Market News

Economy grows as home sales shrink

Markets In a Minute Update

Markets In A Minute for week ending Nov 30, 2018: Economy grows as sales shrink

Markets In A Minute
This week on The Markets In a Minute: The economy grows while home sales shrink.
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Economic Market Update home sales shrink

The Economy

  • Recent comments by Fed Chair Jerome Powell have markets questioning if we’ll see policy rate increases in 2019, which could be good for mortgage rates
  • Consumer spending increased by the most in 7 months in October. But underlying price pressures slowed, meaning inflation is less of a concern
  • The economy grew 3.5% in the 3rd quarter, lower than the 2nd quarter’s 4.2% expansion. Still, corporate profits reached a 6-year high

Housing news by Laura Borja

  • Despite moderation, September’s annual home price gains remain strong at 5.5%, as reported by Case-Shiller
  • October’s pending home sales shrink by 2.6% from the previous month. Sales were down 6.7% compared with October 2017, for the 10th month of annual declines
  • New home sales also fell in October. However, data last week showed an increase in building activity. A larger supply of available homes could bring more sales

The Last Laugh

“Get your facts first, then you can distort them as you please.”

– Mark Twain

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.

Wondering how changing interest rates and home prices might affect your budget?

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