In the Money

ARTICLES

  • Fannie Mae downgrades economic forecast citing "ratcheting up of trade tensions"

    Says 2020 will be the worst year since the Great Recession
    Fannie Mae downgraded its forecast for U.S. economic growth, citing a "ratcheting up of trade tensions," and said 2020 will see the worst economy in more than a decade. The mortgage giant revised its projection for GDP growth to 1.5% for next year, which would be the worst performance since a 2.5% contraction in 2009, according to data from the Bureau of Economic Analysis.
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  • Homebuilder confidence weakens as cost concerns mount

    Builder sentiment slides two points to 64 in June
    As cost and labor concerns continue to grow, homebuilder confidence retreated to 64 points in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index. NAHB Chairman Greg Ugalde said while demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues.
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  • Dueling polls on Fed's next move suggest the safe bet is a July rate cut

    Only 2 out of 46 economists in WSJ poll say the FOMC will act at next week's meeting
    Traders in futures markets are signaling a 22.5% probability of a Fed rate cut next week and an 86% chance of a cut at or before its July 30-31 meeting, according to CME Group. Economists polled by The Wall Street Journal gave a different picture: About 0.5% said they expect a move next week and 40% pegged it to the July gathering. That makes July the safe bet, with perhaps language added to the FOMC’s June statement aimed at reassuring markets.
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  • Almost 1 in 5 American households expect to move in next year, Fed report says

    Highest May reading in 2 years comes as more Americans are uncertain about their financial futures
    About 19% of American households surveyed in May expected to move in the next 12 months, according to the Survey of Consumer Expectations report from the Federal Reserve Bank of New York. Households also reported lower expectations of future income growth.
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  • Amazon's home ranks as best state economy in WalletHub study, Alaska is worst

    Utah is second, followed by Massachusetts and California
    Washington ranked as the best state economy for 2019, followed by Utah, Massachusetts and California, according to a WalletHub study. Alaska had the worst economy, followed by Louisiana, Mississippi, Hawaii and West Virginia. "U.S. economic growth depends heavily on the performance of individual states, but some contribute more than others," the report stated.
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  • Tumbling mortgage rates have made 6.8 million people "refi eligible"

    This week's 21-month low added almost 1 million borrowers to the pool
    When the average U.S. rate for a 30-year fixed mortgage dropped to a 21-month low this week, it pulled almost 1 million more mortgage holders into the pool of homeowners who are "refi eligible." There are now 6.8 million mortgage holders who would benefit from a refinancing, according to Black Knight.
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  • U.S. job growth cools as economic tensions heat up

    The nation's unemployment rate holds steady at 3.6% in May
    In May, the U.S. economy added only 75,000 jobs, according to the latest Employment Situation Summary report from the U.S. Bureau of Labor Statistics. The National Association of Federally-Insured Credit Unions Chief Economist said that this report, combined with nerves around tariffs, will be enough to force a rate cut from the Fed in either June or July.
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  • WSJ: Chance of a rate cut at next FOMC meeting is 25% as trade worries mount

    "Darker economic outlook" may force policymakers to take accommodative stance
    The chance the Federal Reserve will cut its benchmark rate in two weeks at its next meeting in Washington, D.C., is mounting as trade tensions threaten the economy. Traders in futures markets are putting about a 25% chance of a rate cut at the June 18-19 meeting and a 75% chance of a cut at the meeting after that, on July 30-31, according to data from CME Group.
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  • U.S. home values reach a record high of $26.1 trillion in Q1, Fed says

    Home equity rises to the highest level since 2002
    The value of all U.S. owner-occupied homes increased to a record $26.1 trillion in the first quarter, according to the Federal Reserve report released Thursday known as the Flow of Funds. Americans owned 60.4% of their homes in the first quarter, measuring the share of their home that was unmortgaged, the highest level of equity since 2002.
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  • May's job report reveals the labor market is tightening

    Construction jobs fell by 36,000 jobs in May
    The National Employment Report indicates that private sector employment increased by only 27,000 jobs from April to May, according to the ADP Research Institute and Moody’s Analytics. ADP Research Institute Vice President Ahu Yildirmaz said May marked the smallest gain since the expansion began.
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