Rate cuts before the Fed hits its target? Markets in a Minute

A quick look at the markets for the week ending July 19, 2024 ‌ 

30 Year Fixed Mortgage Rate Movement

Retail spending held steady in June, as it has throughout the year. Consumers remained resilient despite forecasts of a pullback. The Fed Beige Book reported softening economic activity and the expectation of slowing growth through the end of this election year. Fed Chair Powell said that rate cuts may occur before the Fed’s 2% inflation target is reached, provided inflation is still falling.      June’s higher mortgage rates for consumers and elevated rates for construction loans continued to put a damper on builder sentiment. Though single-family housing starts hit an 8-month low in June, new home construction rose 3% overall with an increase in multi-family homes. Last week’s interest rate drop pushed refinance applications up 15% for the week to a 2-year high. Purchase apps were down 3% for the week.
	In an FHFA pilot program announced last week, some homeowners will be able to refinance without paying for title insurance.
	Showing how sensitive buyers are to rates, purchase mortgage apps rose 5% last week but were still 11% lower than a year ago.
	More than a third of homeowners plan to stay in their homes forever, per a recent survey. Younger respondents were more likely to foresee a move.