Saturday AM Economist: Mortgage Update & Inspections Contract Guide!

by Karyn McAlpin

Welcome to this edition of my Saturday Morning Economist, where I'm sharing the latest mortgage market updates, along with additional information and insights that I believe you may find helpful.

Mortgage Market

The first quarter GDP, a comprehensive measure of goods and services produced, released Thursday, showed that our economy grew slower, and inflation increased more than expected to start 2024. Typically, slower economic growth is rate-friendly, however, this was more than offset by the higher-than-expected GDP inflation component, which increased the pressure on rates. Economists were prepared for more negative news on Friday with the scheduled release of the FED's preferred inflation measure, personal consumption expenditures (PCE). Thankfully, the results were in line with expectations enabling mortgage/bond markets to recover losses from the day before. As a result, rates for most programs ended the week the same as last.

Next week is loaded with influential economic reporting and events. I will be monitoring the release of the National Manufacturing Index and the next FED meeting on Wednesday, as well as the National Services Index and the key Employment report on Friday for any potential impact on mortgage rates.

CNBC: Q1 GDP Growth Slowed Below Forecasts
Yahoo! Finance: Pending Home Sales in March Rise to Strongest Clip in a Year

Did You Know?

Topic: Inspections & Tests

Did You Know requirements for inspections and tests along with how long each is valid for varies between agencies? In general, we believe all inspections are worthy of serious consideration but also believe it is important homebuyers are made aware of their options and given choice when not mandatory.

Please reach out when you have a listing or have clients with a property of interest and there are questions on what is required.