Tidewater Home Funding Blog

The Markets in a Minute - January 20

January 20th, 2017

For the Week Ending January 20, 2017

 

Recent comments by Fed Chair Janet Yellen point to multiple policy rate increases in 2017, supported by a strong labor market and increasing inflation. 
Jobless claims fell to 233,000, the lowest level since November 1973. Claims remained below 300,000, the healthy market threshold, for the 98th straight week.
U.S. consumer prices rose in December in the largest year-over-year increase in 2-1/2 years, signaling inflation pressures could be building. 

 

Housing starts jumped 11.3% in December, a sign of a strengthening economy. The housing market remains strong despite a recent increase in mortgage rates.
The NAHB Housing Market Index pointed to a slightly less confident outlook among home builders. However, the reading of 67 is still favorable.
Buyer demand is considered abnormally strong for the off-season, as tight inventory and possibly increasing mortgage rates give buyers a sense of urgency.

 

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.