Raleigh Mortgage lender Kevin Martini, with the Martini Mortgage Group at Benchmark Mortgage provides an market update on what happened last week and what is happening with Raleigh mortgage rates in The Weekly Kevin Martini.
The Jobs Report was released and Non-Farm Payrolls rose by 157K in July and this was below the expectations. Now even though expectations were not met, the figures for May and June were revised higher by a total of 59K new jobs. The Unemployment Rate also fell to 3.9%. For the last three months, job growth has averaged 224K compared to 195K in the same period in 2017.
As it relates to home prices, home prices rose steadily across the nation in May. The S&P CoreLogic Case-Shiller 20-City Home Price Index rose 6.5% from May 2017 to May 2018. This was in line with expectations and just below the 6.7% recorded in April. On a monthly basis, home prices were up 0.7%from April to May – WOW!
This week we heard from the Fed too!
The Fed met and left its benchmark Fed Funds Rate unchanged and this was expected by the Martini Mortgage Group at Benchmark Mortgage. It is important to highlight that the Fed Funds Rates does not impact Raleigh mortgage rates and it is only the rate banks use to lend money to other banks overnight. It is not just important but critical to note that the Fed shared economic activity is growing at a strong rate and the labor market continues to strengthen.
Historically, when there are strong signs for the economy, Stocks could benefit at the expense of Mortgage Bonds and the home loan rates are tided to Mortgage Bonds. This could cause Mortgage Bond Prices to decline and when this happens…the yield for Mortgage Bonds goes up & when yield goes up then it means higher Raleigh home loan rates.
With that said, know that, many factors impact both Stocks and Bonds, so it’s important to keep an eye on the overall picture. For instance, low inflation is typically good news for fixed investments like Mortgage Bonds, and the annual Core Personal Consumption Expenditures edged lower to 1.9% in June. This was down from the 2% recorded in May and below the Fed’s 2%t target range.
Here is the Kevin Martini bottom line: right now, Raleigh home loan rates remain attractive and near historically low levels. If you or someone you know has questions about Raleigh home loan rates or Raleigh mortgage products, please give the Martini Mortgage Group at Benchmark Mortgage a call at (919) 238-4934. We’re always happy to help.
Kevin Martini | NMLS ID 143962 | Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Forks Road, Suite 101 Raleigh, NC 27609 | (919) 238-4934 | www.KevinMartini.com | Kevin.Martini@Benchmark.us | Equal Housing Opportunity
On July 31, 2018 Kevin Martini with the Martini Mortgage Group at Benchmark Mortgage released episode 014 of the Martini Mortgage Podcast – it was called: ‘let us do the math‘ & it goes of the economics of renting vs owning — the math amy surprise you. The Martini Mortgage Podcast is also available on iTunes, Spotify and Soundcloud.