Is Now the Time To Buy? Homebuyer’s Mortgage Watch – November 11, 2018 [Video]
This Week Highlights the Following Updates:
- The Federal Reserve ended its meeting last week without changing interest rates and making no real change to policy.
- Mortgage rates moved upward mostly based on technical pressures stemming from the additional issuance of government debt, coupled with lackluster demand.
- Expectations remain elevated for a change in rates at the Fed’s December meeting. The ISM Services Index did step downward to 60.3. However, this remains well above the 49.9 mark that indicates contraction in the services sector.
- Consumer borrowing declined appreciably, but according to Consumer Sentiment, consumer moods still remain very elevated. While the headline Producer Price Index kicked 0.6% higher, the more important core reading remained unchanged for the month.
- The Consumer Price Index, Retail Sales, and Industrial Production numbers are all due this week. If inflation remains tame, and the other two indicators beat their consensus estimates, we’re likely to see rates moving upward. Otherwise, rates might move downward, but not by very much.
Few Zombies in the Real Estate Market
In 2013, ATTOM Data Solutions began tracking “zombie” vacancies, homes which had been abandoned by their owners. That year, they uncovered more than 44,000 homes moving through the foreclose process where the owner was absent. At the end of Q3, 2017, the number was down to 14,312 and a year later had fallen to 10,291. However, there are still about 1.5 million homes in the US that are considered completely abandoned by their rightful owners.