Please enjoy this quick update on what happened this week in the housing and financial markets.
|As expected, the Fed raised policy rates 0.25% at this month’s FOMC meeting. Bond yields jumped on the news, pressuring mortgage rates higher.|
|The U.S. dollar is at the highest level since 2003, and stocks continue to hit all-time highs. Strong economic activity contributes to mortgage rates increasing.|
|The Fed is expected to continue to raise policy rates in 2017, possibly up to three times. Rising inflation and a tightening job market support this speculation.|
|Rising mortgage rates aren’t dampening Costa Mesa builders’ enthusiasm for the housing market. The NAHB housing market index rose to a 9-year high in December.|
|The HAMP mortgage program expires December 31, 2016. It is being replaced with a new payment reducing Flex Modification foreclosure prevention program.|
|Rising mortgage rates are not curbing demand in Costa Mesa, as inventory remains stubbornly low. Constrained supply is expected for at least 4 more years, according to NAR|