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Why did rates drop? {Market Report} June 4th

Why did rates drop? {Market Report} June 4th
June 4, 2018 abryant

 

 

You’re just jealous because the voices only talk to me.

Those who throw dirt only lose ground.

How is it that “fat chance” and “slim chance” mean the same thing?

My clever comebacks usually surface an hour too late.

 

Now The Market Report . . .

 

First quarter economic growth was solid though slightly lower than expected at 2.2%. An improving economy can pressure rates higher.

Mortgage rates improved as overseas investors took to the safety of U.S. bonds. Political turmoil in Italy was the largest catalyst as their markets crashed.

Consumer spending increased in April, amid rising inflation. Inflation and a strong labor market will likely lead to a Fed rate increase at June’s FOMC meeting.

 

Home price gains may be slowing down as mortgage rates creep up. March prices were unchanged compared to February, according to Case-Shiller.

Even still, values rose 6.5% nationally over last year. Housing prices are now 7.8% above their previous peak during the housing boom of 2006.

Pending home sales fell 1.3% in April compared to March. Most economists blame low inventory rather than slightly higher mortgage rates as the cause.

 

I used to be a banker, but then I lost interest.

 

This week’s potential market moving reports are:

 

Monday, June 4th:          Factory Orders

Tuesday, June 5th:         JOLTS Report

Wednesday, June 6th:   MBA Mortgage Applications

Thursday, June 7th:       First Time Jobless Claims

Friday, June 8th:             Wholesale Trade

 

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