Rates remained relatively flat this week and the Government continued it's shutdown. On Friday though, the Government came to an agreement to end the shutdown for at least the next 3 weeks. The reason the shutdown has impacted the market, and has created volatility, is because of uncertainty in the markets and due to the lack of government related economic data and reports about the economy.
In other news this week, comments from the Commerce Secretary said that the U.S. is "miles and miles" from a trade deal with China and that there are "lots and lots of issues". Additional U.S tariffs on Chinese goods will go into effect in March if a trade agreement is not reached.
Also, Strong U.S. labor market conditions were reinforced this morning with the Labor Department weekly unemployment data showing a decrease of 13,000 to a seasonally adjusted 199,000. This is the lowest level since November 1969 and well below forecast of claims rising to 220,000.
Finally, to end on a positive note, The Mortgage Bankers Association released weekly mortgage application volume showing a 2.7% decrease from previous week. However, overall volume was 3.3% higher than one year ago. Purchase volume decreased 2% for the week but was 13% higher than a year ago at this time. This new is showing signs that 2019 should be another good year for the Real Estate industry, especially Colorado. There are a lot of Millennials out in the market that want to buy a home, but have yet to do so. This age group should continue to keep the housing market strong. The caveat being wages. If wages increase, expect the housing market to stay strong.
The Altitude Group
REALTOR® | MCNE
REALTOR® | CNE