Mortgage News Weekly 10/7/19

In This Issue…

Last Week in Review: Slowing but Growing

Forecast for the Week: Enough to Follow

View: The Advantage of a Smart Doorbell Camera

Last Week in Review:

Slowing but Growing

Recession fears were back in full swing this past week, thanks to the weakest manufacturing report since June 2009, which was the last month of the Great Recession.

Manufacturing makes up 12% of our economy, while consumer spending makes up nearly 70%. So even though the consumer remains strong, markets were spooked that this is the first sign of cracks within the U.S. economy.

Trade uncertainty, increased tariffs, and softening demand were reasons cited by respondents for the soft reading.

Stocks hate bad news, uncertainty, and recession talk, so the initial reaction was a significant Stock selloff. Typically, when Stocks struggle, Bonds and home loan rates benefit, but the improvements were modest at best.

Here are three reasons rates have seemed to stall — think of a “wait and see” attitude.

Markets are looking for confirmation of a slowdown in other parts of economy, besides manufacturing.
The Fed is going to cut rates, likely two times before year-end to help the economy grow.
U.S./China trade talks carry potential positive headline risk.

How the economy performs in the months ahead and responds to pending Fed rate cuts will likely determine which path home loan rates will follow. But the biggest story and wild card heading into October will be the U.S./China trade talks. Positive developments can change everything in a minute and home loan rates could suffer. And the opposite is also true.

Bottom line: If you are looking to take out a mortgage, it’s tough to see a better situation for the consumer. The economy remains strong and rates are at three-year lows. In order for rates to get much better, the economy would likely have to perform worse, potentially much worse…which could happen, but let’s not wish for it.

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

Forecast for the Week:

Enough to Follow

There are only a few economic reports set for release this upcoming week, but the U.S. markets already have a lot to chew on with growth fears, the U.S./China trade issues, impeachment headlines, along with the tug-of-war between central banks and slowing global economies.

The economic highlight this week will be the inflation reading Consumer Price Index for September. The data comes after the tame reading in August, which was due in part to declining gas prices and energy costs.

The Treasury will be selling a boatload of securities via auction, with the 10-year Note in the spotlight. The added supply could weigh on Bond prices and can also keep rates from moving lower — we shall see.

Reports to watch:

Inflation data on the wholesale level from the Producer Price Index will be released on Tuesday followed by the more closely watched Consumer Price Index on Thursday. The Consumer Sentiment Index will be delivered on Friday.

The Mortgage Market Guide View…

The Advantage of a Smart Doorbell Camera

Homeowners and business owners who need to increase security around their homes and buildings should consider installing a smart doorbell camera. Smart doorbells use the latest technology to provide you with remote monitoring capabilities and live video.

Smart doorbell cameras offer an advantage because they combine the utility of a doorbell with the security of a camera for surveillance. You can get real-time video of what is going on at your front door and you can see who is there without having to open the door. You can even check who is there without having to get out of your chair.

A smart doorbell will also allow you to speak to the person standing at your front door without unlocking and opening the door. If there is a stranger right outside, the speaker allows you to determine why that person is there. The remote capabilities even allow you to speak to the visitor when you are not present. Thus, that person can leave without even knowing that the building was empty.

Additionally, smart doorbells take snapshots of your visitors. If you miss a visitor, you can go back and check the photos to see who came by and what time they were there.

Finally, you can use the video doorbell to keep track of your deliveries. This is a benefit for both homes and for small businesses. The doorbell can send you a notification when the delivery arrives or when the delivery driver leaves a package at the door.

A smart doorbell camera makes it easy to monitor any entranceway no matter where you are.

Source: Home Advisor

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