Mortgage News Weekly 11/4/19

In This Issue…

Last Week in Review: Fed Takes Action

Forecast for the Week: Lighter News Week Ahead

View: Exercises You Can Do at Work

Last Week in Review:

Fed Takes Action

This past week the Federal Reserve cut the Fed Funds Rate for the third time this year, by .25%. Along with the rate cut, the Fed released a statement that suggested a “pause” in further cuts, but stated they will be ready to act again should “slowing global conditions” continue or if inflation declines further.

Speaking of inflation, it is important to remind ourselves that the Fed rate cut does not affect home loan rates. Home loan rates are slightly higher than they were right before the Fed started cutting rates in July. The main driver of long-term rates is inflation. If inflation goes up, long-term rates go up. The opposite is also true.

With that said, here’s an important quote from Fed Chairman Jerome Powell yesterday: “I think we would need to see a really significant move up in inflation that’s persistent before we would consider raising rates to address inflation concerns.” This means that the Fed is not likely to hike rates anytime soon, and long-term rates should not go too high too soon either because there is no threat of high inflation at this time.

Bottom line: home loan rates are near three-year lows and this week’s modest price improvement can be quickly erased should good news regarding U.S./China emerge.

If you or someone you know has questions about home loans, give me a call. I’d be happy to help.

Forecast for the Week:

Lighter News Week Ahead

After last week’s risk-event filled reports, headlines, and earnings, the upcoming week’s economic calendar and newsworthy events may pale in comparison.

The headlines that the markets will cling to will be the ongoing U.S./China trade issues. Late last week a Chinese official doubted a long-term deal with the White House could be hammered out but hopes for a “phase one” signing is bright in the next two to three weeks.

Corporate earnings season will also continue in the upcoming week with most companies already reporting and beating expectations. Of the S&P 500 companies that have reported thus far, about 75% have exceeded profit estimates.

The Treasury will be selling a boatload of notes and Bonds with the 10-year offering the highlight.

Reports to watch:

The only reports that could impact the markets this upcoming week are Tuesday’s ISM Service Index and Friday’s Consumer Sentiment Index.

The Mortgage Market Guide View:

Exercises You Can Do at Work

We all know how important it is to exercise as often as possible, but sometimes we get bogged down with work and taking care of our busy lives. Here are five exercises you can do while at your desk or in your office.

Seated leg raises. Sit straight up in your chair and hold your stomach tight. Lift one leg straight out and hold for at least 10 seconds. Slowly lower that leg and repeat on the other one. Do three sets.
Chair or desk dips. Make sure the chair or desk is sturdy and won’t slip away. With your back to the furniture, place your palms on the edge, and place your feet flat in front of you. Slowly lower your body so your waist is even with your knees, and then raise yourself back up. Do 10 to 20 of these.
Swiveling abs. Sit in your swivel office chair and brace your hands on the desk in front of you. Raise both legs and swivel back and forth, feeling your core muscles engage. Do 20 swivels on each side.
Wall push-ups. Stand in front of a wall and place both hands flat against it about shoulder-width apart. Push back and then forward. Do 20-30 of these.
Squats. Stand with your feet wide and your hands on your hips. Keep your back as straight as possible while you bend at the knees and then stand back up. Perform 20-30 of these.

Moving throughout the day and doing these simple exercises will help you stay healthy.

Sources: Tiny Pulse, Draxe, Snack Nation

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