Friday Market Recap: Housing Market Gains and Record GDP Growth
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, MarketWatch, MarketWatch, MarketWatch, Bloomberg, Mortgage News Daily