Just a quick real estate market update:
- Fed Chair Janet Yellen signaled that the Fed is not overly concerned with low inflation. That means they may likely start raising interest rates later this year.
- Consumer spending rose slightly in February after dropping in January, but was still considered weak. Weak spending will help keep interest rates low.
- Recent news points to a slowdown in economic growth for the first quarter. Economic weakness means little inflation and is good for rates.
- NAR reports that February’s pending home sales hit the highest level since June 2013. Strengthening demand signals a strong spring market.
- February construction spending was up 2.1% from February 2014. Spending on single-family construction was down slightly but rose on multi-family home building.
- Nationwide unveiled its new Leading Index of Healthy Housing Markets (LIHHM). According to Nationwide, the housing market is at its healthiest level since 2001.
Special Thanks to Nina Efird with Fidelity Bank Mortgage for providing ‘The Market in A Minute’ update. Nina serves the Williamsburg VA area and does a phenomenal job of closing loans and going the extra mile for home buyers.
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recentmidweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.