Mortgage Market Summary as of September 18, 2017

Both Retail Sales and Industrial Production headed lower last week, with mortgage rates holding steady in the face of mounting domestic uncertainty. The hurricanes, political turmoil, and the potential for a new Fed Chair in February are creating questions for both economic growth and the Fed’s plans for next year. While the 3rd quarter does appear to be softer than the previous one, August’s data did sport a little bit of inflation. This coupled with improvements in international economies could begin to create a floor for rates, even if the US economy sputters a bit.

This week, the Fed meets to discuss monetary policy. The market is expecting no change to the Fed’s interest rates, but we could see some more details or insights into when and how the Fed will begin to unwind its massive financial portfolio. Should the Fed choose to continue to reinvest proceeds, then rates could trend just a bit further downward. It’s worth beginning to pay a bit more attention to foreign economies. Some experts are expecting their gains to benefit our economy.

-Courtesy of our in-house Senior Loan Officer Rick Lombardo (310) 435-7439 at First Capital.

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