“Seems there ain’t no end in sight.” (Garth Brooks) Home price gains continued in April, with low inventory across much of the country remaining a key culprit.
Research firm CoreLogic reported that home prices, including distressed sales, rose 6.9 percent from April 2017 to April 2018, while there was a 1.2 percent gain from March to April of this year. Looking ahead, CoreLogic forecasts a 5.3 percent increase in home prices from April 2018 to April 2019.
CoreLogic Chief Economist Frank Nothaft noted that “new construction has failed to keep up with and meet new housing growth or replace existing inventory.”
Also of note, there was good news from the labor sector, as weekly Initial Jobless Claims continue to hover near lows seen in the early 1970s.
Headlines from across the globe had an impact on the markets in recent days. However, the smoothing of the political turmoil in the Eurozone and easing trade-issue woes lifted some of the uncertainty that had driven investors into the safer haven of the bond market. Mortgage bonds have been edging lower as a result. Investors may also be awaiting the upcoming Fed meeting June 12-13, as it has the potential to move the markets.
At this time, home loan rates remain historically attractive.
Inflation news and the Fed meeting will be front and center.
- Look for a double dose of inflation news with the Consumer Price Index on Tuesday and the Producer Price Index Wednesday.
- The Fed’s Monetary Policy Statement will be released Wednesday at 2:00 p.m. ET.
- On Thursday, weekly Initial Jobless Claims and Retail Sales will be reported.
- Manufacturing news ends the week on Friday with the release of the Empire State Index.
If you or someone you know has any questions about home loan rates or products, please reach out. I’d be happy to help.