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Michael Creed

Markets in a Minute | October 21, 2017

 

Recently released economic data shows the economy is growing, but inflation is still not a problem. Rising inflation pressures mortgage rates to move higher.
The Fed is expected to leave policy rates unchanged at this month’s meeting but raise them at December’s meeting, despite lack of inflation.
Unemployment benefit claims fell to a 44-year low last week. This points to a rebound in job growth after a hurricane-related decline in September.

 

Builder confidence in the housing market rose to a 5-month high in October. However, builders still face increased material costs and labor shortages.
Housing starts were at a 1-year low in September, due to hurricanes disrupting construction. The storms are also blamed for a decline in building permits.
Housing market fundamentals, however, remain solid. Mortgage applications for home purchases were up 4% week-over-week, despite the holiday week.

 

My first job was being a diesel fitter at a pantyhose factory. As they came off the line, I would hold them up and say, “Yeah, deez-el fit her.”

 

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.

Markets in a Minute | October 13, 2017

 

The minutes released from last month’s Fed meeting showed some members don’t agree that low inflation is transitory. Low inflation helps keep rates low.
However, it’s still expected that the Fed will leave rates unchanged in Oct/Nov but will hike policy rates in December. There’s an 88% probability, at the moment.
Producer prices rose in September as gasoline prices jumped. Jobless claims dropped to a one-month low, showing strength in the labor market.

 

Natural disasters continue to reduce inventory in already tight markets. An estimated 9.1 million homes are at risk in Napa & Sonoma counties in California.
The buzz about net-zero homes continues to build. These highly energy efficient homes produce as much or more energy as they consume for heating & cooling.
The number of unfilled jobs in construction continued to rise in August to the highest level since Feb 2007. Homebuilders added over 80k jobs in the last year.

 

Tom had this problem of getting up late in the morning and was always late for work. His boss was mad at him and threatened to fire him if he didn’t do something about it. So, Tom went to his doctor who gave him a pill and told him to take it before he went to bed. Tom slept well, and in fact, beat the alarm in the morning. He had a leisurely breakfast and drove cheerfully to work.

“Boss,” he said, “the pill actually worked!”

“That’s all fine,” said the boss, “but where were you yesterday?”

 

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.