Markets in a Minute: Conforming Loan Limits Surpass 500K!

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

  • Economic growth picked up slightly in the 3rd quarter, though slowing was initially reported. A stronger pace of inventory accumulation and a more gradual decline in business investment contribute.

 

  • October's new orders for key U.S.-made capital goods increased by the most in 9 months, suggesting some stabilization in business investment after 2 straight quarters of contraction.

 

  • Consumer spending rose in October for the 8th month in a row, potentially a good sign for the holiday shopping season.

 

 

  • Pending home sales decreased 1.7% in October from the prior month but did rise 3.9% from a year earlier, the second highest pace since 2016.

 

  • 3rd quarter home prices rose 4.9% over a year ago, the 33rd consecutive quarter of growth. Rising prices led the FHFA to raise the 2020 conforming loan limit by 5.38% to $510,400 (more in high cost areas).

 

  • Over the last 2 months, buyers snapped up new homes at the fastest pace in more than 12 years, adding to signs of strong housing demand amid lower borrowing costs.

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