First Team’s Weekly Mortgage Watch (November 4th, 2018) This Week Highlights the Following Updates:
- While Freddie Mac’s mortgage survey showed mortgage rates moving downward, rates ended the week moving upward.
- In the current economic environment, we are likely to have occasional weeks with rates making a small step downward.
- However, until we have a significant shift in economic activity and outlook, rates are likely to continue moving upward.
- Last week, data once again revealed a solid economy. The ISM Manufacturing Index may have stepped down but continues to highlight strong growth.
- Consumer Confidence sits around an 18-year high with few signs of dropping much anytime soon. 250,000 new jobs were created last month, and we continue to see mixed signs as to whether or not the labor market is generating additional inflationary pressures on the economy.
- Much of this week’s focus will be on the Fed meeting. While most analysts are predicting no change in rates, there will be serious interest in the Fed’s post-meeting comments.
- The more the Fed expresses confidence in the economy and concern for inflation, the higher rates are likely to rise.
Big Buyers: Men, Women, or Couples?
The recently released Profile of Home Buyers and Sellers from NAR unsurprisingly has married couples as the largest percentage of buyers. But is it single men or single women that come in second? As a percentage, men comprised 9% of buyers while women doubled that with 18%. For the third year in a row, the percentage of first-time buyers decreased, dropping to 33% of buyers. The percentage of first-time buyers has not risen above 40% since before 2010.