The Fed didn’t raise policy rates at this month’s FOMC meeting but is expected to raise rates in December. Mortgage rates will likely remain unaffected. The midterm election results are not expected to slow economic growth. As a result, the outcome did not adversely affect stock and bond markets either. Manufacturing activity slipped for a second month in September yet still pointed to growth. Construction spending was up slightly at 0.1%.
Year-over-year purchase applications have held steady despite rising rates, falling 0.2% last week. Last month, consumer housing sentiment fell to its lowest level in a year. Fewer consumers expect home prices to rise or mortgage rates to fall. A recent study shows Gen Z is eager to get an early start on homeownership. They’re twice as likely as previous generations to start saving for a home by age 25.
Graham C. Wong | Vice President – Mortgage Lending | Mortgage Capital Partners |