Shelter Six:  Partial Government Shutdown Temporarily Ends

1. After 35 days, the longest US government shutdown in history ended on Friday but with only a temporary three-week agreement.

2. This is still great news for 800K government employees returning to work this week and finally getting paid, but plenty of uncertainty remains around what will happen past February 15.

3. The Mortgage Bankers Association (MBA) is optimistically forecasting purchase volume to increase 4% this year, followed by 3% in 2020, and 3% in 2012.

4. According to the MBA, keys to a solid spring market are rates staying low, housing inventory continuing to grow, and the job market maintaining its strength.

5. There is plenty of optimism early in the year with strong prequalification activity and mortgage purchase applications up 11% compared to last year.

6. According to the MBA, the biggest risks in 2019 will be ongoing political tensions, slowing global growth, Brexit, rising rates, higher home prices, and a volatile stock market.

Rate Update

Most major economic data was unavailable last week due to the government shutdown and mortgage rates ended the week nearly unchanged.

This Week

The Federal Reserve meets on Wednesday but no change in interest rates is expected.  Core PCE Price Index is due out on Thursday with both Employment figures and the ISM National Manufacturing Index due out on Friday.

January 28, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

Leave a Comment