MORTGAGE BLOGPosted On September 30, 2016
This week mortgage rates dropped as much as a tenth of a percentage point according to some sources, including Mortgage News Daily. The housing market continues to fluctuate with increases in the Case-Shiller Index and declines in pending home sales.
Debatable Debates Stock futures improved slightly the day after the first presidential debate. As predicted, the outcome of the first presidential debate had little impact on the market as a whole. Wall Street continues to open on the low side this week, but these numbers may also be the result of a decline in crude oil prices.
Case-Shiller Index Rises The national 20-City Index rose 5.0% compared to a year ago. The Pacific Northwest saw the biggest gains with Portland prices going up 12.4% and Seattle prices up 11.2% (compared to last year’s reading. Surprisingly San Francisco’s prices were flat this month, the lowest reading out of all cities measured. The Case-Shiller National Index is encroaching on the high previously set in 2006, indicating an upswing in the housing market.
Pending Home Sales Drop The National Association of Realtors announced that the Pending Home Sales Index declined 2.4% from July to August. Despite a strong start, the market momentum has stalled due to suffering supply levels. According to NAR chief economist Lawrence Yun, "In most other areas, an increased number of prospective buyers appear to be either wavering at the steeper home prices pushed up by inventory shortages or disheartened by the competition for the miniscule number of affordable listings."
As we close out the week with some positive metrics and some declines we report that the market is floating. Investors and traders are wary of making moves ahead of the election and we predict a continuation of a quiet market. We’ll see you on Monday for next week’s market forecast.
Sources: Market Watch, Market Watch, PR Newswire
