Mortgage Update – August 30, 2016

    The Six Most Important Things You Need to Know From the Mortgage World this Week.

    ONE

    Federal Reserve Chair, Janet Yellen, referred to the “solid performance of the economy” in a speech last week making a case for an increase in short-term rates.

    TWO

    Many experts predict the Fed will increase rates before the year is out, however, Yellen provided no indication as to the timing of the expected increase in her speech.

    THREE

    July Existing Home Sales dropped 3% from the multi-year high seen in June. This was the first monthly decline since February.

    FOUR

    Contracts signed for New Homes jumped 12% in July to the highest level since October 2007, far exceeding expectations.

    FIVE

    Millennials have been delaying buying homes but, according to a Harvard University study, the next ten years will show a shift in this trend with Millennial households increasing by 2 million per year.

    SIX

    In all, Millennial-headed households are expected to grow from 16 million in 2015 to about 40 million in 2025, according to the report.

     

    RATE UPDATE

    Yellen’s speech on Friday caused a little rate volatility but had little net impact on mortgage rates, which ended the week slightly lower.

    THIS WEEK

    Core PCE Price Index is due out on Monday, Pending Home Sales on Wednesday, ISM National Manufacturing Index on Thursday, and, the biggest report of the month, the Employment Report, on Friday.

     

    Jim Scheu
    NMLS# #659050 GA #51170
     
    Senior Loan Officer
    Shelter Lending Services
    5780 Windward Pkwy, Suite 100
    Alpharetta, GA 30005
     
    Visit my Website
    Mobile: 404.906.6010
    Fax: 610.629.6369
     

    If you have questions about your mortgage needs, please contact our preferred mortgage lender – Jim Scheu with Shelter Lending Services at 404.906.6010 or click the blue banner just below to send him an email.

     
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    The material is intended for licensed mortgage professionals only and is not an extension of credit. Information contained in this document is subject to change without notification. ©2016 Shelter Lending Services, LLC is an Equal Housing Opportunity Lender. NMLS#1033753 (www.nmlsconsumeraccess.org). This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to underwriting and property approval. 695 Mansell Road Suite 200, Roswell, GA 30076. James Williamson NMLS# 552530, AL:#59117, GA:#36174, TN:#120865. Georgia Residential Mortgage Licensee # 38779.
     
     

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