• CMG MORTGAGE, INC. NMLS #1820

Friday Market Recap: Housing Market Gains and Record GDP Growth

  • October 28, 2016

Mortgage rates steadily increased this week with a slight uptick from Monday to Friday’s rate.  We have gains to report across the board with increases in the Case-Shiller home price index, the National Association of Realtors’ pending homes sales index and the Gross Domestic Product. 

The Case-Shiller home price index continued to post gains with a 0.4% increase in August and a 5.1% year-over-year gain. Portland, Seattle, and Denver are seeing exceptional gains posting 11.7%, 11.4% and 8.8% y-o-y increases, respectively.  Rising home values encourage construction and stimulate the housing economy, so these healthy gains are a positive market indicator.

Driven by demand in the West and South, The National Association of Realtors’ pending home sales index increased 1.5% from September.  These gains put the index 2.4% higher than it was last year and forecasts sustained housing market growth. 

The Gross Domestic Product (GDP) grew at its fastest rate since 2014, expanding at 2.9% from July to September.  The gains were bolstered by a spike in exports specifically soybeans after a light harvest in South America.  Consumer spending and imports also increased, but more modestly.  Economists predict solid growth to continue from October to December.

After a month of rising mortgage rates, it seems as though rates are settling down with steady numbers.  This week’s gain’s suggest a strengthened housing market and the GDP growth indicates a stronger national economy. 

 

Sources: Time, MarketWatchMarketWatch, MarketWatch, Bloomberg, Mortgage News Daily

 

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185
cmacdonell@cmgfi.com

APPLY NOW
© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.