Last Week in Review: The Definition of Goldilocks
"Looking ahead, my colleagues and I see a sustained expansion of economic activity, a strong labor market, and inflation near our symmetric 2% objective as most likely." -- Fed Chairman Jerome Powell, 11/13/2019
This quote from our Fed Chair on Capitol Hill this past week was the definition of a "Goldilocks Economy" and reaffirmed the markets that there is no recession in sight!
Thanks to this strong economic backdrop, Mr. Powell also said it's highly unlikely the Fed will cut rates again in December. Remember, Fed rate cuts don't affect home loan rates, so don't expect a sharp uptick in mortgage rates. Why?
As the Fed's quote states, inflation remains low and near the Fed's target. If inflation moves higher, home loan rates move higher. The opposite is also true.
Bottom line: home loan rates improved from the worst levels of the week and head into mid-November still hovering near three-year lows. What an opportunity when coupled with the Goldilocks backdrop.
The content of this website is intended for licensed third party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.
Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00