Market News 11-28-19
Mortgage Market Update
Economic growth picked up slightly in the 3rd quarter, though slowing was initially reported. A stronger pace of inventory accumulation and a more gradual decline in business investment contributed. October’s new orders for key U.S.-made capital goods increased by the most in 9 months, suggesting some stabilization in business investment after 2 straight quarters of contraction. Consumer spending rose in October for the 8th month in a row, potentially a good sign for the holiday shopping season.
Pending home sales decreased 1.7% in October from the prior month but did rise 3.9% from a year earlier, the second highest pace since 2016. 3rd quarter home prices rose 4.9% over a year ago, the 33rd consecutive quarter of growth. Rising prices led the FHFA to raise the 2020 conforming loan limit by 5.38% to $510,400 (more in high cost areas). Over the last 2 months, buyers snapped up new homes at the fastest pace in more than 12 years, adding to signs of strong housing demand amid lower borrowing costs.