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Markets in a Minute – 12/19/2014

For the Week Ending December 19, 2014
Please enjoy this quick update on what’s happening this week in the housing and financial markets. It will be the last market update of the year. Merry Christmas, Happy Holidays and Happy New Year too! Thank you for another great year!

The week’s big news is a Fed announcement that they may adjust policy rates in a “couple” of meetings. The change could lead to higher mortgage rates.
Falling oil prices led to the largest drop in inflation since 2008. The Fed viewed the fluctuation as temporary, so it did not affect rate policy.
The latest jobless claims numbers are again down. The trend supports the Fed view of economic recovery and their plans to increase policy rates in 2015.

Housing starts remain on a flat trend. November housing starts fell, but they followed a strong October number.
Overall builder confidence remains strong for the sixth consecutive month. The optimism centers around expectation of future sales.
In its December outlook, Freddie Mac predicts 2015 will be the best for home sales since 2007. Home values are expected to rise moderately, too.

Reaching the end of a job interview, the Human Resources Officer asks a young loan officer, “And what starting salary are you looking for?” The loan officer replies, “In the region of $125,000 a year, depending on the benefits package.”

The interviewer inquires, “Well, what would you say to a package of five weeks vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every two years, say, a red Corvette?” The loan officer sits up straight and says, “Wow! Are you kidding?”

The interviewer replies, “Yeah, but you started it.”


This is the final edition of Markets in a Minute for 2014.

We look forward to seeing you in 2015. Happy New Year!

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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