Mortgage News for the Week of January 4, 2019
Mortgage Rates Lowest in Nearly a Year

Mortgage rates  have been plummeting, depending on your definition of the word.  To be sure, the past 2 months have no competition in nearly 3 years.  The past few days have been special in their own right.  Whereas there was cause for concern about the new year bringing a bounce for stock prices and mortgage rates, stocks haven't done much of anything in the context of their late-2018 volatility, and mortgage rates have dropped another eighth of a percentage point (or more, depending on the lender).

There are now lenders quoting 30yr fixed rates as low as 4.375% on top tier scenarios with the average lender back to 4.5%.  That's quite a jump from the 5.125% average at the recent highs (just 2 months ago). 

There's still risk associated with the new year, however.  Tomorrow's jobs report is still a potential flashpoint for volatility.  Make sure you have a gameplan to account for positive or negative outcomes tomorrow.  Things could be happening quickly fairly early in the morning.  Read more at NAR's Mortgage News Daily.
Report: Here Comes a Buyer's Market

Home values moved 5.1 percent higher this past November compared to November 2017, according to a new report by CoreLogic. However, appreciation growth is starting to curtail from its 5.4 percent annual gain in October. CoreLogic is predicting a 4.8 percent gain in home values by November 2019.

The National Association of REALTORS┬« also recently reported  an uptick in inventory  entering more markets as more homeowners put their homes up for sale. Buyers are having more choice, prompting some sellers to lower their asking prices due to the added competition, according to CoreLogic researchers.  Read more at NAR's Realtor Magazine.
U.S. economy adds 312,000 jobs in December
Unemployment at 3.9%, fastest growth since February 2018

The unemployment rate moved forward to 3.9% in December, according to the latest Employment Situation Summary report from the U.S. Bureau of Labor Statistics.

According to the report, the number of unemployed persons  rose  276,000 jobs to 6.3 million in December.
LendingTree Chief Economist Tendayi Kapfidze said December job growth was the fastest since February.

"The 99 th  straight month of gains indicates that labor market remains robust and that the economy remains quite strong despite recent turmoil in the financial markets," Kapfidze continued. "This release did not include the impacts of the  government shut down  and government jobs rose at the fastest pace since August."
Pending Home Sales See 0.7 Percent Drop in November

Mortgage Rate Update
New Year Brings Lower Rates

house and graph Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective home buyers excited to buy.

However, it will be interesting to see how the recent turmoil in the stock market will affect home buying activity in the coming months.





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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed.  Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.

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