Is Now the Time To Buy? Homebuyer’s Mortgage Watch – December 16, 2018
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This Week Highlights the Following Updates:
- Mortgage rates continued to move slowly downward last week, as concerns regarding global growth, Brexit, and stock market woes dominated the news.
- Despite the concerns, US economic news continued to be mostly positive. Retail Sales posted a 0.2% increase, but removing volatile issues like cars and gas left a core increase of 0.5%.
- Industrial Production grew by 0.6%, and weekly jobless claims dropped back down to 206K.
- Softening inflation may also be contributing to the downtrend in rates. Neither the CPI nor the PPI readings caused any concerns among economists.
- This week is likely to be dominated by the Fed’s meeting. The market is expecting and has mostly baked-in a rate increase.
- However, the policy announcement and the “dot plot” will be scrutinized for clues as to what the Fed Governors think about the economy.
- If we see a hawkish stance or a mostly unchanged position, then rates may begin slowly moving back upward.
- However, if we discover that the Fed has become more concerned about the economy, rates may move downward.
Bidding Wars on the Downtrend
In 2011, Redfin began surveying and tracking whether real estate agents were facing bidding wars on behalf of their homebuyers. In 2017, 45% of offers competed with another bid. Last month, agents claimed that only 32% of their offers competed with another offer. November’s drop to 32% represents the lowest level of competitive bidding since the firm began tracking. While the middle of the country is seeing more slowing, some coastal areas are still over 70%.