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FIRST TEAM’S WEEKLY MORTGAGE WATCH (October 8th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Mortgage rates appear to be trending upward as the majority of economic data from last week pointed to solid economic growth.
- Both of the ISM Indices stepped on the accelerator, powering past expectations.
- The unemployment rate dropped to 4.2%, with both the participation rate and hourly earning bumping upward. Against this backdrop, analysts pointed to hurricane-related distortions to explain the 33,000 jobs lost in September.
- While this is very likely to be the case, the bond market seems to be more hesitant than the stock market to celebrate and make significant moves.
- If this week’s Retail Sales number blows past expectations like the ISM readings, then rates are very likely to continue moving upward.
- It may be worth noting that the president is considering potential candidates for the Federal Reserve, along with the option of keeping the current chair. While making an appointment in the coming weeks is expected, if Trump decides to hold off on making an announcement, the market might get a little nervous, and that could keep rates from rising too much.
Real Estate Backed Cryptocurrency?
With news and investors all abuzz about Bitcoin and other cryptocurrencies, a company launched this summer called REcoin Group that pitched a currency called REcoin. They billed it as “first ever cryptocurrency backed by real estate.” While the concept of backing a currency with something of tangible value, like real estate, may seem like a great idea, the SEC has charged the company’s CEO with fraud. Right now, there are no cryptocurrencies backed by real estate.