Please enjoy this quick update on what happened this week in the housing and financial markets.
The
idea of a Fed policy rate hike in March has gained steam, with an
almost 80% expectation it will happen. Just last week there was only a
30% chance.
Consumer
spending was down slightly in January, but manufacturing increased. The
labor market remains strong, with jobless claims near a 44-year low.
Inflation recorded the biggest monthly increase in 4 years in January, raising the probability of a policy rate hike from the Fed this month.
Pending
home sales were down slightly in January compared to December, blamed
on higher mortgage rates and near record low supply.
However,
strong demand and low inventory also pushed home price gains to a
2-1/2-year high. Home prices rose 5.8% year over year in December.
Construction
spending was down slightly, but spending on private construction (like
homes) was up. Spending on residential construction actually increased
0.5%.
What do you call a fake noodle?
An impasta.
Rate
movements and volatility are based on published, aggregate national
averages and measured from the previous to the most recent midweek daily
reporting period. These rate trends can differ from our own and are
subject to change at any time.