Shelter Six:  Home Purchases Predicted to Increase in 2019

October 22, 2018 by · Leave a Comment 

1. The Mortgage Bankers Association (MBA) is forecasting that the strong U.S. economy, combined with low unemployment and rising incomes, will lead to a boost in home buying in 2019.

2. The MBA predicted at its Annual Conference last week that 2019 residential purchase mortgage originations will grow 4.2% over 2018 reaching $1.2 Trillion.

3. The MBA also predicted that the Fed will increase short-term rates once more in December and then three times in 2019, and that mortgage rates will average 5.1% next year.

4. Last week’s most significant economic data was Retail Sales, which were much lower than anticipated in September and just .1% higher than in August.

5. Nationally, September Existing Home Sales were also disappointing falling 3.4% from August and 4% from last year while reaching their lowest level since November 2015.

6. September Housing Starts were also down 5% from August.

Rate Update

The major economic data released last week was generally weaker than expected, but its impact was minor, and mortgage rates ended the week slightly higher.

This Week

New Home Sales will be released on Monday with both Pending Home Sales and Durable Orders due out on Thursday.