Hurricanes and the Fed cause stormy weather {Market Update} September 25th

September 25, 2017 abryant

When I drink alcohol…everyone says I’m alcoholic, so when I drink Fanta…that must mean I’m fantastic…right?

The voices in my head aren’t real…my dog told me so.

A synonym is a word you use when you can’t spell the word you first thought of.

Kids born in 2000 never have to worry about forgetting how old they are.

When someone rings the doorbell, why do dogs always assume it’s for them?

Now The Market Update . . .

The Fed announced they will not raise policy rates this month. However, they did signal a rate hike in December is likely, as well as 3 more hikes in 2018.

In October, the Fed will also begin reducing their balance sheet by buying fewer bonds. This could adversely affect mortgage rates over time.

The Fed sees near-term risks to the economy as “roughly balanced.” Low unemployment and economic expansion are good, but lack of inflation is a concern.

Home builders are slightly less optimistic about the housing market this month. The recent hurricanes are causing worries over labor and materials.

Housing starts were down slightly for the second straight month in August. However, single-family home construction was up 1.6% from July.

Existing home sales declined to a 1-year low in August, as inventory continues to be a problem. Areas lacking activity due to recent hurricanes are also to blame.

Overall housing starts are higher even without the hurricane factor.

Home price increases have been cooling as of late, and the latest report for July continues to show this trend.