• CMG MORTGAGE, INC. NMLS #1820

Market Recap: Existing Home Sales Surge, FOMC Minutes, and Rising Rates

  • November 25, 2016

Mortgage rates are still rising but not as drastically.  This week brought mixed housing market news and the release of the FOMC minutes.  While existing home sales are up, new home sales are down. 

Existing home sales are up to their highest level in 10 years.  The National Association of Realtors reported that October’s existing home sales are 2% higher than in September and 5.9% higher in a year-over-year basis.   These numbers suggest a strengthened housing market as demand increases.

New home sales dropped in October to a seasonally adjusted annual rate of 563,000.  Analysts believe that the drop in sales could be linked to a lack of inventory since construction of new homes has not kept up with demand since the recession.

The FOMC meeting minutes for the November 2nd meeting were released Wednesday.  Senior Federal Reserve officials foreshadowed an interest rate hike “relatively soon” and asserted that the increase in jobs is driving “wage inflation.”  Even with the recent change of command in Washington, the economy is on track for a December Rate Hike.

Even with low construction numbers, the record existing home sales bode well for the housing market.  Mortgage rates are starting to level out after their initial post-election climb and all signs point to a rate hike next month.

 

 

Sources: CNBC, Mortgage Daily News, MarketWatch, MarketWatch

 

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).