Mortgage Rates edged lower in latest week, GDP from Q1 rose from second reading, Housing inventory declined nearly 9% from last year
June 29, 2017
Mortgage rates edged lower in the latest week falling to levels not seen since the week of the November presidential election. Freddie Mac reports that the 30-year fixed rate mortgage fell to 3.88% this week with 0.5 in points and fees. That is down from 3.90% in the previous week though above the 3.48% seen last year this time. Market experts had forecasted that mortgage rates would average 4.50% this year, but so far they have averaged 4.08%.
The final read on first quarter Gross Domestic Product rose by 1.4% from 1.2% in the second reading. And though economic growth ticked higher, it is still an anemic reading. Consumer spending edged higher by 1.1% from 0.6% due in part to an increase in spending on healthcare and financial services, this too is at a low level. The Atlanta Fed has since lowered their second quarter GDP expectations to 2.9% as of today from 4% back in late May.
A new report from online listing real estate agent Trulia revealed that housing inventory declined nearly 9% from last year in the second quarter of 2017. Home inventories have fallen for nine consecutive months and are down a whopping 20% from five years ago. Low inventories have been key in the recent rise in home prices and many experts feel that the shortages are having a big impact on the market with no relief in sight.
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