Saturday, January 5th, 2019
Stocks started out the new year continuing to decline caused primarily by Investors’ concerns over the government shutdown, ongoing trade tensions and a global slowing in economic growth. Interest rate volatility remains as conflicting information comes to market with weaker than expected manufacturing data and higher jobless claims released earlier this week before Friday’s Employment Report crushed expectations by adding a massive 312,000 jobs. Federal Reserve Chairman Powell also spoke Friday and delivered a more dovish tone than last month confirming their interest rate policy in 2019 will be flexible leaving the door open for less hikes than forecasted. (Full Article)
Most domestic economic readings show the U.S. economy is still growing while globally there is a slowing which overall have helped interest rates the past several weeks. Given the day-to-day volatility we strongly encourage your clients to stay in close communication with their lender as they negotiate contracts to avoid any surprises caused by market movements. Next week minutes from the December Fed meeting will be released on Wednesday and Inflation readings Friday, both of which have the ability to influence mortgage rates.