Market Minutes For The End Of The Week Of
April 01, 2016
This week Fed Chair Janet Yellen expressed concerns over the health of global economies. Markets reacted favorably to the news, which was good for rates.
Consumer spending is up, but overall inflation remains soft. The Fed is not likely to make policy rate changes until later in the year. This may bode well for mortgage rates too.
The labor market remains strong although wage growth is a concern. Jobless claims were up slightly but well below the 300,000 mark of a healthy labor market.
Pending home sales hit a 7-month high in February, reversing January's decline. The increase bodes well for a strong spring season for the housing market.
Tight inventory remains an issue but is helping to drive home prices up. The Case-Shiller index rose 5.7% in January from the previous year.
Homes with solar energy are in high demand, and buyers are willing to pay extra for them. A recent study shows solar adds an average of $14,329 to the price.
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