Market Comment
Mortgage bond prices finished the week lower which put upward pressure on rates. Trading was quiet the first portion of the week. Stocks surged higher the latter portion of the week as the DOW hit record levels. Housing prices continued to rise according to both the Federal Housing Finance Agency (FHFA) and the Case Shiller releases. Low inventories coupled with low interest rates are two reasons cited for the year over year rise in prices. Consumer confidence was stronger than expected. Revised GDP rose 3.3% versus the expected 3% reading. This figure moved in the right direction but many analysts still want to see higher GDP figures with so much support from the Federal Reserve. Core PCE inflation rose 0.2% as expected. ISM index was 58.2 as expected. We ended the week worse by 1/4 of a discount point.
Jobs and the Economy Our economy in the US is driven by consumer spending, which accounts for almost 70% of Gross Domestic Product (GDP). Three driving forces, low unemployment, low commodity costs, and a solid housing market currently help consumer spending and keep the economic recovery moving in the right direction. It is simple; when a person has a job they can spend money. Low food and energy costs, items that must be purchased to keep a household running, increases money that could be used for other “luxury” items like TV’s and cars. Lastly, many households relied on home equity to enhance lifestyles, pay for college, or make major improvements to the house. Rising home prices make that a possibility again. The abundance of data this week will provide insight into the current state of the economy and most releases have the potential to result in mortgage interest rate changes. Copyright 2017. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com The information contained herein is believed to be accurate, however no representation or warranties are written or implied. |
||||||||||||||||||||||||||||||||||||
-
Recent Posts
-
Recent Comments
-
Archives
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- June 2013
- April 2013
- February 2013
-
Categories
-
Meta