Market Minute: Home Sales Fall

Existing home sales tumbled to a 2-1/2-year low in June, the 4th month of declines.

For the Week Ending August 24, 2018

Christy,
Please enjoy this quick update on what happened this week in the housing and financial markets.


	The minutes released from the Fed’s meeting last month reflected a belief that the economy was growing and a rate hike will be appropriate “soon.”
	Economists anticipate the Fed will raise rates twice more this year. Markets have already priced in the increases, so mortgage rates likely won’t be affected.
	Although talks have resumed between the U.S. and China, the trade war continues to escalate. Tariffs are inflationary and could contribute to higher rates.


	Existing home sales tumbled to a 2-1/2-year low in June, the 4th month of declines. Tight inventory and high prices have some buyers throwing in the towel.
	New home sales were also down. A 1.7% drop in July brought them to a 9-month low. However, reports indicate the inventory of new homes is increasing.
	Prices continue to rise, up 1.1% from the previous 3 months and up 6.5% from a year earlier. Price gains did slow from the first quarter though.

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