Weekly Mortgage Update: November 12th, 2017
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FIRST TEAM’S WEEKLY MORTGAGE WATCH (NOVEMBER 12TH, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Last week saw average mortgage rates drift slightly downward. With limited economic data or news, markets appeared to focus more on the tax reform news flowing out of Washington.
- The wide gaps between the Senate and House versions may have created some disappointment that the probability of a bill moving quickly through Congress has decreased.
- We could see politics surrounding this tax bill playing a role in mortgage rates. If the process of reconciling the two versions becomes extremely acrimonious, and odds of having a bill to the President before the end of the year drop, we could see mortgage rates struggling to move upward, or at least muting any upward movement.
- This week brings us the Producer and Consumer Price Indices, along with Retail Sales and Industrial Production.
- If we get another unexpected flare upward in any of the inflation readings, rates could be pressured upward.
- However, Retail Sales is expected to only post a very small increase, and if it comes in as a decline instead, then we could see mortgage rates drifting slowly downward.
WAS AFFORDABILITY BETTER IN THE LATE 1990’S?
According to new research from Black Knight, Inc., home affordability is better today than it was in the late 1990’s. While many people are concerned about increasing home prices, data reveals that buyers today need a smaller percentage of their median income for a down payment on a home. Currently, a homebuyer would need 21.4% versus 24.2% in the 1990’s. The payment-to-income ratio required for a mortgage payment has also dropped by 2.8%!
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