Trump: Tax Cut Proposal Coming Soon President Trump commented last Thursday that he is expecting to give initial details on proposed tax cuts in two to three weeks.
The Hits Keep Coming for Rates Comments from Fed officials and stronger than expected economic data were negative for mortgage rates last week.
European Data Pushes Rates Up When it comes to the bond market, good economic news is bad news for rates. In the UK, third quarter GDP growth was stronger than expected, and Spain’s unemployment rate declined more than expected.
Fed Debates Next Move The mortgage market was a bit jumpy last week in response to the mixed Fed messages that began on Tuesday with an unexpectedly “pro rate hike” speech from the Fed’s Dudley.
Weak GDP Report Helps Rates Mortgage rates also improved following the release of Friday’s disappointing GDP data.
Stock Rally Pushes Rates Up With long-term bond yields at or near record low levels following the Brexit vote on June 23, investors decided this week that stocks had become relatively more attractive than bonds.
Rates Drop Despite Big Job Number Under normal circumstances, a big positive job number like the one we saw on Friday, would have sent mortgage rates upward.
Rates Drop on News of “Brexit” A shocking British vote to exit the European Union sent both stocks and mortgage rates much lower on Friday. While the final polls ahead of the vote were close, the vast majority of investors expected the UK to vote to remain in the European Union.
Rates Helped by Weak Jobs Report The important monthly jobs report released on Friday was a big disappointment. Against a consensus forecast of 160K, the economy added just 38K jobs in May, which was the lowest level since September 2010.
Hot Housing Market, Strong Durable Goods = Rake Hike Coming Soon The market for both previously owned homes and newly built homes saw their best activity in years. Improved labor market conditions and low mortgage rates are a great combination to support a very active housing market.