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Markets in a Minute – 9/26/2014

For the Week Ending September 26, 2014
Please enjoy this quick update on what’s happening this week in the housing and financial markets. 


After last week’s plunge, jobless claims rose less than expected this week. Labor is key to Fed decisions, and low unemployment can lead to higher rates.
Rates are still settling after anticipation for and reaction to last week’s Fed announcements. Still, they remain in the narrow range seen in most of 2014.
Three separate reports show growing strength in the U.S. manufacturing industry. As the economy continues to strengthen, rates could increase.

New home sales surprised with an 18% climb in August. Sales hit the highest level since May 2008. New home sales account for about 10% of the market.
In contrast, August’s existing home sales fell slightly. Overall they continued the summer’s steady pace. Rising prices may be pushing investors out of the market.
Housing confidence is at its highest level since January. Of the groups surveyed, millennial renters are the most confident in their future ability to own a home.

A man walks into a New York City bank and says he wants to borrow $2,000 for three weeks. The loan officer asks him what kind of collateral he has. The man says “I’ve got a Rolls Royce. Keep it until the loan is paid off.”

The loan officer promptly has the car driven into the bank’s underground parking for safe keeping and gives the man $2,000.

Three weeks later the man comes into the bank, pays back the $2,000 loan, plus $10 interest, and regains possession of the Rolls Royce. The loan officer asks him, “Sir, if I may ask, why would a man who drives a Rolls Royce need to borrow two thousand dollars?”

The man answers, “I had to go to Europe for three weeks, and where else could I store a Rolls Royce that long for ten dollars?”

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

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