There was some good news to be had at the conclusion of a tumultuous week on Wall Street. Slowing global growth and a slight miss on jobs numbers helped to push mortgage rates to their lowest levels that we have seen in the past two months. This weakening in growth rates has analysts less concerned about inflation which is reflected in the lower mortgage rates.
There have been a number of different market analysts discussing a potential economic slowdown in recent weeks, and many of their remarks include data highlighting to a slowing housing market. Typically, construction and housing are strong drivers in the overall economy, with overall construction, both residential and commercial, accounting for about 7% of today's GDP. It is interesting to note that while housing starts are growing at a slower pace, no such change has been observed in the commercial sector. This downturn has some market watchers worried about the chances for another massive crisis similar to the crunch that precipitated the 2008 housing crisis and ensuing recession.
If you are shopping for a mortgage, you may hear the terms conforming and non-conforming, and wonder what exactly they mean. Simply put, conforming loans are at or below the level of debt that can be taken on by Fannie Mae and Freddie Mac. With non-conforming loans, there are additional financial requirements that are part of the mortgage process. Every year the Federal Housing Finance Agency (FHFA) determines the necessary increase in housing prices in order to establish the new conforming loan values.
It was a good week for mortgage rates in spite of mixed data reports on the economic front. The stock market continued its trend of volatility and finished the week down overall. Concurrent changes in the bond market reflected its inverse relationship with equities, and the continued outlook for a global slowdown also helped to push yields lower. This, in turn, influenced the decrease in mortgage rates
Hipotecas en Naples
Naples 3Q Housing Market Remains Strong
Are you a military veteran who is looking for a Bonita Springs VA home loan? The team at Core Mortgage Financial is here to help you finance the home of your dreams! Our team understands how to efficiently navigate the VA mortgage process and close on your home while avoiding headaches and hassles. Whether you have served in the Army, National Guard, Marines, Air Force, Navy, or Coast Guard, Core Mortgage Financial is considered the best VA mortgage company in Bonita Springs. Let us help you obtain the best financing that is available to you through the VA mortgage program
The top takeaway from this week's market performance is the effect that the volatility had on the overall mortgage markets. With a lower market came lower rates, with the major economic news released throughout the week seeming to have little effect. The mixed data didn't seem to move markets either way in any significant form. Strong earnings and GDP growth pushed yields lower and brought mortgage rates down. Analysts maintained their weaker outlook for overall global growth in spite of the release of some strong economic data.
Bay Pines VAHCS to Host Ribbon Cutting Ceremony for New Naples Clinic 10/25/2018