U.S. Gross Domestic Product

“The key to making money in stocks is not getting scared out of them.” (Peter Lynch) Folks didn’t receive that memo this past week as the threat of rising rates and some not-so-rosy outlooks from firms like Amazon definitely frightened investors, who fled from stocks.

All three major Stock indices — the Dow Jones, S&P 500 and Nasdaq — sold off hard this week and are now flat-to-negative for the year.

Even a better than expected 3rd quarter GDP reading of 3.5% along with a stellar consumer spending reading on Friday could not help stocks avoid a selloff at the open.

The bond market welcomed some of the money from the stock selloff, thus helping home loan rates improve slightly.

Bottom line: The markets are very volatile and the improvement in home loan rates this week is relatively modest when considering the magnitude of the stock market decline.

With home loan rates off the highest levels of 2018, now is a wonderful time to secure financing.

Market volatility is likely to continue this coming week as important economic reports are set to be released.

First up will be the Fed’s favorite inflation gauge, the annual Core PCE, currently hovering at the Fed’s target range of 2%. The Fed has forecasted that the rate will remain near current levels through 2021. This would be good news for home loan rates.

Also, watch for readings on the labor market, including Wednesday’s ADP Report and the most anticipated economic report, the monthly Jobs Report for October, which comes out Friday.

Within the Jobs Report is Hourly Earnings, which has ticked up in recent months causing the recent rise in home loan rates.

Key Economic Reports This Week:

  • On Monday, the Core PCE and Personal Income and Spending will be released.
  • Tuesday brings Consumer Confidence and the Case-Shiller Home Price Index.
  • Wednesday will kick off the first of two key labor market reports in the ADP Private Payrolls data along with the inflation reading Employment Cost Index.
  • Thursday’s data includes Weekly Initial Jobless Claims, ISM Manufacturing Index and Productivity.
  • Friday we get the Jobs Report for October which includes Non-Farm Payrolls, the Unemployment Rate and Hourly Earnings.

If you or someone you know has any questions about home loan rates, please give me a call. I’d be happy to help.

Source: Vantage

Related Articles

Homebridge’s Diversity & Inclusion Advisory and Support Council In our continuing efforts to create a more equitable workplace, Homebridge established its Diversity & Inclusion Advisory and Support Council. This group will have two primary roles. First, to serve as a think tank for initiatives that will help foster and grow…
Read More of the post Homebridge’s Diversity & Inclusion Advisory and Support Council

We are thrilled to expand our renewed commitment to Diversity and Inclusion through a partnership with Circa, a national workforce development and recruiting company. With a tarnished history of discrimination, the mortgage industry must take responsibility now to create a new path for equal housing opportunities for all. This starts…
Read More of the post Homebridge Partners with Circa as Part of Renewed Commitment to Diversity & Inclusion

At Homebridge, we know our customers come from all walks of life, and so do we. Under the leadership of our new Office of Diversity and Inclusion, we are inspired to try new things, speak openly, and be bold. It brings us together in ways that help us stand out…
Read More of the post Mortgage Professional America Interview on our New Office of Diversity and Inclusion

There's no place like home, just ask Mackenzie Holowach. When the pandemic hit, Holowach was transferred to assist at a COVID testing site and later worked in a New Jersey ICU. Changing clothes before entering the home she shared with her sister became her norm and Holowach even spent time living…
Read More of the post Stories from the Frontline