Fed Moves Interest Rates Up – Mortgage Rate Impact
March 24, 2017
This week in the housing and financial markets.
It’s been a tough week for stocks, suffering the biggest one-day loss since November’s election. Bonds have benefited, which helps mortgage rates.
Investors are watching the vote on the new healthcare bill, Trump’s first big policy test. Losing or delaying it could cause concerns for expected tax cut legislation.
Jobless claims were higher than expected this week but still below the 300,000 threshold, signaling a healthy labor market. That level has now held for 80 weeks.
Existing home sales were down in February. Although demand remains strong, sales were held back by a shortage of homes on the market.
The persistent lack of inventory has helped keep prices rising though. The median house price surged 7.7% from a year ago to $228,400 in February.
New home sales were also up, jumping to a 7-month high in February. Sales were up 12.8% compared to February 2016.