Is Now the Time To Buy? Homebuyer’s Mortgage Watch – April 21, 2019
This Week Highlights the Following Updates:
- This year began with some concerns about how the economy would fare. The government shutdown and disruption to official economic data spooked others.
- Some analysts started calling for the Fed to cut rates to boost the economy. While the first quarter may not have been a stellar quarter in terms of overall economic output, there was some acceleration as the quarter progressed.
- Retail Sales bolted upward by 1.6% last month and claims for joblessness came in under 200K last week.
- Mortgage rates slid downward as chatter of economic challenges made the market nervous. While we are seeing more signs that the economy is picking up, mortgage rates are only rising slowly.
- With continued signs that inflation remains tame, mortgage rates might continue on a gentle path upward.
- This week ends with the first estimate for the first quarter’s GDP. In January, some experts were estimating that economic output was nearing zero.
- By March, it was clear the economy was in better shape than thought. If GDP comes in around 2.0%, rates are likely to continue moving upward.
Homeowners Faring Better Than Renters
According to new research released by CoreLogic, owning a home provides a lower “cost burden” than renting, and for owners, the situation is improving. In 2017, 27% of owners devoted 30% or more of their income towards monthly mortgage payments and owner expenses (cost burdened). In 2007, that percentage was 37%. For renters, 46% were considered cost burdened in 2017, practically unchanged for the previous ten years.