Mortgage News

The Markets in a Minute - March 3

March 2nd, 2017 | markets-in-a-minute

For the Week Ending March 3, 2017

 

The idea of a Fed policy rate hike in March has gained steam, with an almost 80% expectation it will happen. Just last week there was only a 30% chance.
Consumer spending was down slightly in January, but manufacturing increased. The labor market remains strong, with jobless claims near a 44-year low.
Inflation recorded the biggest monthly increase in 4 years in January, raising the probability of a policy rate hike from the Fed this month.

 

Pending home sales were down slightly in January compared to December, blamed on higher mortgage rates and near record low supply.
However, strong demand and low inventory also pushed home price gains to a 2-1/2-year high. Home prices rose 5.8% year over year in December.
Construction spending was down slightly, but spending on private construction (like homes) was up. Spending on residential construction actually increased 0.5%.
 

 

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.