Market News 8-8-19
Mortgage Market Update
At the end of July, the Fed made its first policy rate cut since 2008. Over the following week, mortgage interest rates dropped to their lowest level since 2016. President Trump announced a new round of tariffs on Chinese imports to start in September. Stocks plummeted and bonds rallied, pushing mortgage rates lower. Weekly jobless claims fell last week, pointing to a strong labor market despite a slowing economy and deteriorating trade relations with China.
Fannie Mae’s Home Purchase Sentiment Index hit a record high in July, showing consumer confidence. The HPSI reached 93.7, up 7.2 points over last year. Mortgage applications rose 5.3% from the previous week and 46.5% over a year ago. Most of the increase was in refinance applications. Home prices continued to rise in the 2nd quarter. The national median existing single-family home sales price was $279,600, up 4.3% from a year ago.