Weekly Recap and the Financial Markets
A good week for mortgage rates as uncertainty about European elections had a somewhat positive impact. Mid-week Fed minutes and economic data had little affect on rates, which ended the week about the same as the previous week.
Uncertainty about the outcome of overseas elections had investors focused on the possibility of France leaving the European Union. This concern had investors shifting to safer assets.
On Wednesday, the Fed released minutes from its February 1 meeting. Concern about a Fed decision to reduce mortgage holdings, investors pushed higher ahead of the release. When there was little mention of this topic, investors reversed their positions resulting in little net change.
Home sales begin the year on a strong note. In January sales of previously owned homes rose to the highest level since February 2007. Sales might have been better if inventory had been higher. Total inventory of existing homes for sale remained near record low levels with just a 3.6-month supply. It’s definitely a seller’s market.
Pending Home Sales and Durable Orders are out today. Core PCE price index, the the Fed’s preferred inflation indicator, ISM national manufacturing index are released Wednesday. ISM national services index will be released Friday. Fed Chair Yellen also speaks on Friday. The next Employment report comes out March 10.
Posted on February 27, 2017 at 1:49 pm by Rob Williams