AgentIndustry News

Real estate rates defy economic expansion

30-year fixed holds near 5.75%

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

Mortgage rates are still holding against pretty good October economic data, and against the Fed's obvious intention to raise its interest rate at least another percentage point as quickly as it can. October industrial production doubled its forecast increase, up .7 percent, as did industrial capacity in use, up to 77.7 percent. October CPI and PPI core rates were just under control, up .2 percent and .3 percent respectively, but the energy-distorted nominals soared .6 percent and 1.7 percent. There are limits to core comfort at the Fed. The bond market has construed $55/bbl oil as a powerful economic suppressant, and a price unwinding will remove some support for bonds. The current $47-$48 hasn't hurt, but a drop to the $30s would. There is evidence of constrained consumption, wholesale switching to coal, and increased production – here in Colorado, the drilling-permit count just broke the 1980 record and the 1990 Gulf War I peak, and is now triple the average of the late 1990...