Weekly Mortgage Market News
The Fed indicated that monetary policy would remain on hold for a while. At some point, they will eventually have to raise the fed funds rate.
Some Fed officials feel that the economy is still too fragile and the labor market is too weak to begin to raise rates. Confirmation that rate hikes are a long way off encouraged investors to purchase stocks and mortgage-backed securities (MBS), and both equity markets and mortgage markets have performed very well since the Fed’s announcement.
Next weeks economic events will include:
Monday 11-16 – Retail sales
Tuesday 11-17 – PPI and Industrial Production (important indicator for economic activity)
Wed 11-18 – Consumer Price Index (most closely watched inflation report) and Housing Starts
Thursday – Philly Fed and Leading Indicators
