The economic data coming out of the US this week showed that not only is a recession highly unlikely anytime soon, but the economy is actually reaccelerating from the slowdown seen last Fall.

Back in October and November, the Fed was very hawkish and suggested that three rate hikes would come in 2019. This caused angst and fear that economic conditions would slow to a recession. It also led to a sharp decline in stocks and consumer confidence.

Fast forward just a couple months to January 2019, and the Fed completely reversed their position, signaling there is no rate hike coming in 2019 or anytime soon. This new “wait and see” position from the Fed has set off a rally in stocks and a surge in consumer confidence.

It has also sparked confidence and certainty in the business climate, thereby giving corporations reason to hire and retain employees.

And that was clearly evident this week as we saw yet another decline in Initial Jobless (Unemployment) Claims and the rate at which people are being fired from their jobs.

Bottom line: the economic resurgence has put upward pressure on rates this past week, but they remain near 12-month lows.

Looking ahead: corporate earnings will continue to dominate the headlines, and what companies say about the future could have an effect on the financial markets.

Housing data along with Gross Domestic Product will be released in the upcoming week, and the markets will find out if the economy continues to strengthen.

In addition, global economic headlines will help define whether or not the reacceleration of US and global economic data will continue.

Should it continue, stocks and home loan rates are likely to edge higher still.

Reports to watch:

  • Housing data from Existing Home Sales will be released on Monday followed by New Home Sales on Tuesday.
  • On Thursday, Weekly Initial Jobless Claims along with Durable Orders will be delivered.
  • The first reading on Q1 Gross Domestic Product and Consumer Sentiment will be reported on Friday.

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

      If you’re in the market to purchase a home and concerned that rising interest rates could price you out of the home you’re looking at, then this article is for you. First, you need to understand what the difference in your monthly payment could be if the…
Read More of the post Why Rate Isn’t Everything

No Crash Zone. A Current Outlook on the Housing Market. By: Michael Pennington   Are you concerned that the housing market will crash like it did in 2008? That the cost of homes has skyrocketed so high that they are bound to come spiraling down and result in a market…
Read More of the post Why the Market Won’t Crash

As the weather changes, many homeowners are ready to not only get some spring cleaning done but to upgrade their home and make the most of spring this year and every other year. If you’ve wondered what home improvement projects will set your backyard up for success this season, three…
Read More of the post Three Backyard Renovations to Help You Enjoy the Spring!

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