Weekly Mortgage Market Update for 03-31-2017

For the Week Ending March 31, 2017

Please enjoy this quick update on what happened this week in the housing and financial markets.

Consumer confidence surged to a 16+-year high in March. Consumer optimism is supported by a strong labor market and a positive economic outlook.

The GDP increased 2.1% in the 4th quarter, signaling economic growth. Consumer spending accounts for more than 2/3rds of U.S. economic activity.

Some Fed members made comments this week supporting more than 3 rate hikes this year. The majority still favor a gradual approach to increases though.

Pending home sales rose 5.5% in February, a 2.6% increase year-over-year. Warm weather and potentially higher interest rates have been said to be the cause.

Home prices roared to the highest levels in nearly 3 years as demand remains strong. Tight inventory continues to be an issue, supporting increasing prices.

Warm winter weather also has led to a surge in new home construction. However, homebuilders are struggling to find enough workers to meet demand.

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They planet.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends candiffer from our own and are subject to change at any time.