First Team’s Weekly Mortgage Watch (September 9th, 2018) This Week Highlights The Following Updates:
- Last week saw strong economic data continue to reinforce the notion that the economy is powering along nicely.
- Both the ISM indices stepped upward, with the manufacturing index hitting a 14-year high. While June and July’s new jobs created numbers were adjusted downward, August saw 201,000 new jobs created.
- The unemployment rate remained steady at 3.9%, while weekly jobless claims plunged to 203,000! While we are seeing some increases in wages, it is being balanced by similar increases in worker productivity, which helps keep wage-driven inflation from rising.
- Even with all the positive economic news, mortgage rates moved upward only slightly for the week.
- This week features some big economic data points of both the Producer and Consumer Price Indexes, along with Retail Sales and Industrial Production.
- If both the inflation indices continue to show muted price pressures and the other two major reports comes in positive, rates are likely to continue moving upward, but if we see additional inflationary pressure, rates are likely to rise quickly.
Moving With Kids Is A More “Urgent” Prospect
According to NAR’s 2018 Moving with Kids Report, buyers and sellers with children younger than 18 have different real estate habits. When selling a home, 26% of parents tend to consider their need to sell as “very urgent” while on only 14% without children consider their needs “very urgent.” School district factors into over 50% of parents buying decisions, while only 11% of non-child buyers consider the school district and tend to buy homes with few bedrooms.