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

© 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 with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).