WEEKLY MORTGAGE WATCH – JANUARY 31, 2016
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FIRST TEAM’S WEEKLY MORTGAGE WATCH (JANUARY 31TH, 2016) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Mortgage rates found more space to fall last week, as global economic concerns mounted, along with a Fed omission that caused some concerns for domestic growth.
- As expected, GDP came in lower for the 4th quarter of last year.
- However, markets didn’t react all that strongly to the news, but the omission in the Fed’s post-meeting announcement of any assessment of the current balance of risks for economic growth and inflation did generate concerns.
- Many experts predict that the Fed may be planning to scale back on interest rate hikes this year.
- Last week ended with news the Japanese central bank was joining many other counties’ central banks in charging banks interest to park cash. The move is intended to push banks to do more business lending, but bonds rallied around the world, and cash flowed in US treasuries and bonds, pushing mortgage rates lower.
- Next week has both the ISM Indices and the monthly employment data due. If we have another week of even slighter weaker than expected economic news, rates could find a little more space to drop.
NOT SHOVELING? BE READY FOR SNOW-SHAMING!
What are you to do if you have to walk a sidewalk that isn’t being shoveled by the business that sits along that sidewalk? A new trend appears to be growing bigger this year, with people posting and sharing on social media about businesses that aren’t clearing their sidewalks. The idea of using shaming tactics certainly isn’t new, but with the rapid nature of sharing on social media, not removing the snow from your sidewalk can quickly become the latest online gossip.