AgentIndustry News

Sluggish economy takes real estate rates lower

Weakness linked to consumer credit, HELOC reports

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

After a mid-week pop-up in long-term rates, they are back down, mortgages again approaching 6 percent. The pop-up was a form of boredom: after three weeks near 4.35 percent, unable to move lower, the 10-year T-note wandered upward. The threat of breaking out of the top of a sub-4.5 percent range reversed today on three forces, in approximate order of importance: good inflation news, suspiciously weak-side economic data, and money moving to Treasurys for safety (Iran...). This morning's producer price data were terrific: the December core rate rose only .1 percent, year-over-year only 1.7 percent, and in a declining trend. There are some healthy data: new claims for unemployment insurance are holding low, the job market overall in its best shape since 2000. And, mortgage applications have recovered from a holiday slowdown. However, the preponderance of other data is moving toward the slowdown side. December retail sales came in slightly below the .9 percent overall forecast a...