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Markets in a Minute August 14 {Market Update}

Markets in a Minute August 14 {Market Update}
August 14, 2017 abryant

My windows aren’t dirty, my dog is painting.

Everything happening now happens because of everything that has happened before.

Don’t worry, the spider is smaller than you. “Yeah. So is a grenade.”

My kitchen cleaner says “for a clean kitchen” so I can’t use it, mine is dirty.

What’s best way to build upper arm strength? Take lots of selfies.

 

Forget what you know about a reverse mortgage because they are one of the most widely misunderstood options available when it comes to home loans.

 For more information on Reverse Mortgages read this article by our own Steve Schaefer:  Reverse Mortgage May Be Right For You [3 Myths Debunked]

 

Now the Market Update . . .

Producer prices fell in July, recording their biggest drop in 11 months and pointing to lower inflation. The lack of inflation could help keep mortgage rates low.

Geopolitical tensions between the U.S. and North Korea have caused stocks to lose ground. Traders have moved to bonds for safety, helping mortgage rates.

Jobless claims below 300,000 continue to show labor market strength. However, it’s not likely the Fed will raise rates until inflation increases.

 

Mortgage applications rose 3% last week. While refinance apps were up 5%, purchase apps were also up 1% compared to the previous week.

Three projects found to have highest ROI for adding value to a home were: fixing window leaks; remodeling the basement or a bathroom; and better insulating the attic.

Corelogic reports that May’s number of delinquent mortgages was at the lowest level in nearly a decade. Foreclosure inventory was also much lower.

 

More News:

It has been a while since any vulnerability to the rising stock indices has existed. Economic data continues to remain strong and shows little sign of weakening.

Geopolitical concerns over North Korea’s nuclear capabilities have been taking center stage all week on the news channels and the concerns are starting to show up in investor decisions with more money flowing into the bond market.

The airline industry, which is not known for stellar customer service, is dipping it toes into the water of two-way texting with customers. Up until now, airlines only offered text communication one-way, from airline to passengers, typically related to gate change announcements and flight schedule changes or delays.

Hawaiian Airlines and Jetblue have begun a service (albeit it is in the testing phase) that allows passengers to communicate with customer service staff via text. Passengers can even complain via text. This should be interesting to see what happens in the coming months as the airline industry is notorious for not listening.

 

“Why is it that I always catch you goofing off?!” asked the boss.

The employee replied, “That’s easy. It’s because you walk so quietly!”

 

This week’s potential market moving reports are:

Tuesday August 15th – Housing Market Index

Wednesday August 16th – MBA Mortgage Applications, Housing Starts, FOMC Minutes

Thursday August 17th – First Time Jobless Claims, Industrial Production

Friday August 18th – Consumer Sentiment