Mortgage News

The Markets in a Minute - August 19

August 19th, 2016

For the Week Ending August 19, 2016
 

Enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Minutes released from last month's FOMC meeting show the Fed is divided on the need to raise rates. Ultimately they agreed to monitor economic conditions further.
 
Consumer prices in July were unchanged from June, indicating no inflation. Without inflation, the Fed will typically hesitate in raising policy rates.
 
However, jobless claims fell more than expected this week, reinforcing views of labor market strength that could encourage the Fed to raise policy rates sooner.
 

Mortgage applications for home purchases were down slightly for the week but were 10% higher than the same week a year ago. Mortgage rates remain low.
 
Housing starts climbed to the highest level since February, with a slight increase in single-family homes. Homebuilders appear optimistic that sales will continue to rise.
 
Multi-family home construction should continue to increase. Building permits issued for multi-family homes rose 6.3% to a 441,000-unit pace in July.

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.