In the week starting December 10, 2018, mortgage rates were even after two weeks of declines to the lowest levels since September 2018.
Trade tensions between the United States and China seemed to relax for the week, writes Zillow director of economic research Aaron Terrazas, after the Chinese announcement of new foreign investment policies "that most perceived to be more welcoming to foreign businesses." The stock market responded positively and pushed rates downward, though the momentum was curbed by burgeoning political unrest in the United Kingdom, France, and Spain.
Next week’s much-anticipated meeting of the Federal Reserve Open Market Committee will shape expectations for the week ahead. Markets expect another rate hike in December, but the committee’s forward guidance will be the more important determinant of long-term rates. Before that, eyes will be on Friday’s release of November retail data – key metrics that reflect holiday spending and consumer sentiment.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable