End of the Week Market Update

Posted by DB Wilson on Friday, October 24th, 2014 at 1:58pm.

By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.

Mortgage interest rates increased slightly this past week as economic data was limited.  Markets are looking toward next week’s FOMC meeting to see if the Fed concludes its quantitative easing at the end of October.  The Fed’s balance sheet has expanded to $4.48 trillion.  Fed Chair Yellen is open to reinvesting maturing bonds depending upon economic conditions.  Reducing the balance sheet to normal historical levels may take until the end of the decade according to Yellen.  Economic data was mostly stronger than expected.  Economic data stronger than expected included September Existing Home Sales, weekly jobless claims, the August FHFA Home Price Index, September Leading Economic Indicators, and September New Home Sales.  Inflation data continues to be tame with the Consumer Price Index (CPI) up 1.7% year over year, under the Fed’s 2.0% target.  Core CPI, excluding the food and energy components, was also up 1.7% year over year.  In the United Kingdom, Q3 GDP increased by just 0.7%, consistent with the economic slowdown in Europe. 

The Dow Jones Industrial Average is currently at 16,740, up about 360 points on the week.  The crude oil spot price is currently $80.72 per barrel, down over $2 per barrel on the week.  The Dollar strengthened versus both the Euro and Yen on the week.

Next week look toward Tuesday’s Durable Goods Orders and Consumer Confidence Index, Wednesday’s FOMC Announcement, Thursday’s first look at Q3 GDP and Jobless Claims, and Friday’s Personal Income and Outlays as potential market moving events.

Do you have clients that need pre-qualified this weekend? Give me a call 970-270-2479

Jessica Shanahan

jshanahan@premierlends.com

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