Yesterday Fed Chair Powell's testimony in front of the Senate Banking Committee reiterated the Fed will remain patient on interest rate hikes while watching the incoming data. He went on to say that the FOMC will "evaluate the appropriate timing and approach for the end of the balance sheet runoff." There's probably a good chance the Fed will halt or slow the quantitative tightening by year-end.
Signed contracts to purchase homes surprisingly jumped in January from December with gains seen across all four major regions of the U.S. The National Association of REALTORS© (NAR) reports that Pending Home Sales jumped 4.6% from December though year-over-year signings fell 2.3%, marking the thirteenth straight month of annual declines. Lawrence Yun, NAR chief economist said, “Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”
Mortgage rates were essentially unchanged in the latest week and remain near 12-month lows. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage was at 4.65% in the week ending February 22, 2019 with an average 0.42 in points. Total mortgage application volume rose by 5.3% while the refinance and purchase index increased 4.6% and 6.1%, respectively. The 30-year jumbo loan fell by 16 basis points to 4.40% with 0.29 in points. "Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment," said Mike Fratantoni, MBA Senior Vice President and Chief Economist.
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