Mortgage News

The Markets in a Minute - November 18

For the Week Ending November 18, 2016   Mortgage rates rose as markets prepare for expected economic growth and anticipated inflation under the Trump administration. Inflation can bring higher rates. Fed Chair Janet Yellen's comments this week support the idea of a Fed policy rate hike in December. Economists almost unanimously agree a hike is coming. Also supporting a possible Fed policy rate hike, the labor market continues to show strength, and consumer prices recorded their biggest increase in 6 months.  New housing starts surged to a 9+-year high in ...

November 18th, 2016 The Markets in a Minute - November 18

The Markets in a Minute - November 11

For the Week Ending November 11, 2016    Markets worldwide reacted to Trump's victory, causing mortgage rates to rise. The reaction was to his proposed economic policies, not his political agenda. Initially markets were expected to react negatively to Trump's win. Instead stocks rallied and bond yields skyrocketed on early belief that inflation will follow. The Fed is now overwhelmingly expected to raise policy rates at their December meeting. However, the Fed's decisions have not failed to surprise in the past.  Speculation abounds on the ef...

November 11th, 2016 The Markets in a Minute - November 11

The Markets in a Minute - November 4

For the Week Ending November 4, 2016  The Fed voted not to raise policy rates at this week's meeting, but did signal that they may raise rates at December's meeting if economic improvement continues. Jobless claims were up slightly, but layoffs were at a 5-month low. A strong non-farm payroll report could fuel speculation that the Fed will raise rates in December. Consumer spending is up and factory orders rose for the 3rd straight month. As the economy heats up, inflation could become an issue and bring higher rates. Although construction spending was down sli...

November 4th, 2016 The Markets in a Minute - November 4

The Markets in a Minute - October 28

For the Week Ending October 28, 2016  Although business spending is a bit tepid, the economy continues to show signs of improvement. Growth estimates for the third quarter are as high as 3.3%. The Fed meets next week and on Wednesday will announce if there will be a policy rate increase. Most economists think the Fed will wait until December to hike. If the Fed does make it clear that they plan to raise policy rates in December, markets will likely price that move in immediately, and mortgage rates may rise. Case-Shiller reports that home prices rose 5.3% in August ove...

October 28th, 2016 The Markets in a Minute - October 28

The Markets in a Minute - October 21

For the Week Ending October 21, 2016   Consumer prices rose in September, suggesting an increase in inflation that could keep the Fed on track for raising policy rates in December. September's retail sales numbers offer another sign of an improving economy. Retail sales rose 0.6% in September and have increased 2.9% for the year. The Fed will also look at employment when making a decision to raise policy rates, and this week's jobless claims showed the labor market remains strong. In a sign that the housing recovery continues, a recent index showed home bu...

October 21st, 2016 The Markets in a Minute - October 21

The Markets in a Minute - October 14

For the Week Ending October 14, 2016 Please enjoy this quick update on what happened this week in the housing and financial markets.  Minutes from last month's FOMC meeting showed several members in favor of raising policy rates, making a rate hike before the end of the year more likely. Supporting the Fed's view of an improving economy, jobless claims once again hit a new low this week. Labor market strength could push the Fed to raise rates. The Fed also looks at inflation when deciding if and when to raise policy rates. Inflation has been increasing, also su...

October 14th, 2016 The Markets in a Minute - October 14