Market Update

Producer prices fell in July, recording their biggest drop in 11 months and pointing to lower inflation. The lack of inflation could help keep mortgage rates low. Geopolitical tensions between the U.S. and North Korea have caused stocks to lose ground. Traders have moved to bonds for safety, helping mortgage rates. Jobless claims below 300,000 continue to show labor market strength. However, it’s not likely the Fed will raise rates until inflation increases.

Mortgage applications rose 3% last week. While refinance apps were up 5%, purchase apps were also up 1% compared to the previous week. Three projects found to have highest ROI for adding value to a home were: fixing window leaks; remodeling the basement or a bathroom; and better insulating the attic. Corelogic reports that May’s number of delinquent mortgages was at the lowest level in nearly a decade. Foreclosure inventory was also much lower.