October 9th, 2015 1:24 PM by Jonathan White
Mortgage Market News for the week ending October 09,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
1280 Centre Street
Newton, MA 02459
Rally, Rates Rise
from bonds to stocks over the past week. The economic data had little
impact. As a result, mortgage rates ended the week a little higher.
circumstances, mortgage rates improve when stocks decline, and the
reverse is true as well. We have seen an example of this relationship
over the last few weeks. During the second half of September, stocks
declined and mortgage rates improved. The trend has reversed,
however, as the Dow has climbed about 600 points over the past week,
while mortgage rates have risen.
There were no
major surprises in the Minutes from the September 17 Fed meeting released
on Thursday. The Minutes revealed that Fed officials held off on a rate
hike due to uncertainty that inflation will rise to their 2.0%
target level. The Minutes also noted that weakness in other countries
added to the downside risk for economic growth and inflation in the U.S.
Since the September 17 Fed meeting, the U.S. economic data has indicated
slowing growth, justifying the Fed's decision and adding pressure for the
Fed to hold rates steady longer.
Looking ahead, Retail
Sales will be released on Wednesday. Retail Sales account for about
70% of economic activity. The Consumer Price Index (CPI), the most
closely watched monthly inflation report, will come out on Thursday.
Industrial Production, another important indicator of economic activity,
and the JOLTS report will be released on Friday. JOLTS measures job
openings and labor turnover rates. Mortgage markets will be closed on
Monday in observance of Columbus Day.
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