Weekly What’s Happening – February 28, 2019

It’s time for your weekly look at what’s happening with rate movement, the economy, and the housing market.¬†Watch to the end for a quick smile.

Washington Mortgage Lender - Weekly What's Happening - Feb. 28, 2019

The Economy

Economic growth in the 4th quarter was better than anticipated. Gross domestic product increased 2.6%, much higher than the 2.2% expectation.

Fed Chair Jerome Powell gave semi-annual testimony to Congress this week. Hee said the economy was healthy but cautioned about conflicting signals.

Jobless claims rose last week more than expected. The 225,000 claims reached a 10-month hihg, suggesting some slowing in the labor market.

Housing News

According to Case-Shiller, annual home price gains moderated in December to a 4.7% pace. This is still near the long-term historical average of about 5.5%.

Pending home sales rebounded 4.6% in January over December. It’s likely that a return to lower rates has already helped and will continue to support increases.

Housing starts fell to a 2-yeear low in December, as construction of both single and multi-family housing declined. However, permits point to a coming rebound.

See you again next week!

**Rate movements and volatility are based on published, aggregated national averages and measured from the previous to the most recent mid-week daily reporting period. These rate trends can differ from our own and are subject to change at any time.

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