AgentIndustry News

Economy in need of political stimulus

Weak market growth may keep lid on further rate hikes

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

The mortgage market has held all of last week's gains, and low-fee, 30-year fixed-rate deals are still near 6 percent. The 10-year T-note remained rock steady in a 4.45 percent-4.47 percent range. This stability after such a big gain is remarkable in itself, and astonishing in that the bulk of the rate drop was caused by weakness in a single monthly employment report, the most notoriously unreliable of data series, and at the beginning of a "measured" but presumably merciless round of Fed tightening. There are growing suspicions that economic softness may be more widespread than a single, anomalous report on jobs. We got only one tidbit of new data this week: "same-store" retail sales flattened in June to half the prior five-months' average gain. Gold and dollar markets reinforced speculation that the Fed may have to back down from a straight-line return to a 3 percent-or-so "neutral" Fed funds rate, possibly taking a pass as soon as its August meeting. $40/bbl oil is sandpapering th...