Market Commentary - Lender Rates Update

Mortgage rates increased last week, due to economic news continuing to point toward improving economic conditions. For the first time since 2014, GDP increases of 3% that were back to back. New Home Sales blew by expectations, growing in astounding 18.9%. Additionally, announcements from the European Central bank bolstered the view that their economy is also on a solid recovery track.

This week is a big week for economic data and events. Consumer Confidence, ISM Index, and the employment report which is analyzed monthly are all due against a backdrop of a Fed meeting and the potential for an announcement of the next Fed Chair. There is almost zero expectation of any change in interest rates from the Fed, buts odds for a December increase have moved to nearly 100%. After last month’s surprise drop in new jobs for September, many analysts are expecting a significant revision upward into positive territory or an out sized increase in new jobs for last month. If that fails to materialize, then we may see any upward rate trajectory slowed, and market optimism muted somewhat. 

This will undoubtedly continue to bolster the housing in the Southern Utah Housing market as St. George metro is already one of the fastest growing areas in the country.