Rates Helped By News of Possible ECB Stimulus The past couple of weeks have been dominated with talk of the possible December Fed rate increase. With a quarter point increase largely priced into the bond and mortgage markets, rates received some welcomed  news from an overseas ally.  Increased expectations for additional stimulus in Europe were positive for mortgage rates over … Read More

Rates Stabilize after Retail Sales Fall Short The recent trend toward higher mortgage rates paused last week. A shortfall in the retail sales data and increased expectations for additional stimulus in Europe were positive for mortgage rates, which ended the week flat.

Mortgage Rates Spike on Hot Jobs Report Against a consensus forecast of 190K, the economy added 271K jobs in October, the strongest reading of the year.

Many investors have dubbed the status of our US Economy as “Goldilocks”, not too hot and not too cold.  But the most recent economic data has suggested that perhaps the porridge of economic growth in the U.S. is cooling.

Stock Rally Pushes Rates Up Investors large and small typically seek the relative safety of the bond market (including mortgage bonds) during times of uncertainty.  Rates over the last month have benefited from this “flight to safety” of capital as stocks have been sold in favor of bonds.  

Swing and a Miss!  Job Report Strikes Out Friday’s key Employment report was disappointing nearly across the board. Against a consensus forecast of 205K, the economy added just 142K jobs in September.

Heads Up, Yellen Says Hike Coming Soon On Thursday night, Fed Chair Yellen gave her first speech since the Fed meeting on September 17. She clarified many of the issues which had created uncertainty for investors.

Take a Hike? Fed Says No Heading into Thursday’s Fed announcement, investors were split about whether the Fed would raise the federal funds rate for the first time since 2006. The Fed chose to make no change.