Market Recap: Government Shutdown Delays New Home Sales Report

  • December 28, 2018

CMG Image

Mortgage rates did not move significantly this week, trending slightly downward.  Markets were closed on Tuesday in observance of the Christmas holiday.  The US government has been partially shutdown since Thursday 12/20, following a budgetary dispute in Congress.  The S&P CoreLogic Case-Shiller home price index was released on Tuesday, as planned.  New home sales were delayed due to the partial government shutdown. 

The Case-Shiller home price index was released, as scheduled, on Tuesday.  The seasonally adjusted 20-city index increased 0.4% month-over-month.  Year-over-year, the index is up 5.0%.  The data indicates that home price appreciation continues to slow, although home prices are still rising at a faster pace than incomes.  Only Las Vegas saw double-digit annual gains.  Month-over-month, 8 metros actually saw a decrease in home prices and 2 were unchanged. 

The new home sales report, scheduled for release on Thursday, was delayed due to the government shutdown.  The report will likely be released once the government reopens. 

The pending home sales index declined unexpectedly in November, down 0.7% month-over-month to a level of 101.4.  Although housing starts improved in November, completions of newly constructed single-family homes are down for the third straight month, further constraining already limited for-sale inventory.  National Association of Realtors (NAR) chief economist, Lawrence Yun, explained in a statement, “the pending home sales data was not yet reflecting recent favorable mortgage rate conditions.” 

The partial government shutdown is likely to continue into the new year.  The next budget vote is not scheduled until January 3rd.  Additionally, markets will be closed next Tuesday in observance of New Year’s Day. 


Sources: CNBC, CNBC, Econoday, MarketWatch, MarketWatch, Mortgage News Daily, The New York Times

Ashley Ortega
Loan Officer
NMLS # 238561
Branch NMLS # 920781

Ashley Ortega

PHONE: (619) 554-1905

CMG Image
© 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).