Shelter Six:  July New Home Sales 36% Higher Than Last Year

The Fed unveiled a major shift in policy last week to allow inflation and unemployment to run higher, abandoning decades of precedent and ensuring rates will stay low for years to come.

The new policy is known as “average inflation targeting” and will allow inflation to run above the Fed’s 2% goal “for some time” following periods when it has run below 2%.

As a result of the change, it is expected that the Fed will raise the Federal Funds Rate at a slower pace than in the past when labor market conditions improve.

The strong housing data continues to roll in. Last week’s New Home Sales report rose 14% from June and 36% from last July to the best level since 2006.

Fannie Mae and Freddie Mac announced a nationwide suspension of single-family foreclosures and evictions has been extended from Aug 31 through the end of the year.

The FHFA pushed the implementation date for a new Conforming .5% refinance fee from Sept 1 to Dec 1 (loans under $125K will be exempted).

Rate Update

Although a volatile week, the 30-year Conforming rate trickled down last week and fell slightly back under 3%.

This Week

The ISM National Manufacturing Index will be released on Tuesday, the ISM National Services Index on Thursday, and Employment figures on Friday.

August 31, 2020 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.

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