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Chrisman's Corner: Keep an Eye on National Trends & Rates

As noted last week JMAC has moved along with the TRID changes, as have our brokers; any questions should be referred to our Account Executives. Although this will take some time to sort out, our brokers are saying that their clients still need loans!
 
So what else is going on out there, impacting the industry, that we feel our brokers should know about? Here’s something we haven’t heard for a while: existing home sales have slowed down recently. We learned in August that there was a drop of 4.8% from July sales; however, existing home sales are up 6.2% since last August. But JMAC’s staff noticed that “a positive” rises from the ashes: slowing sale of existing homes is positive for mortgage rates. 
 
Now, back to the slowing. We all remember when China devalued the Yuan (how can you not?). Well here is one of the effects: Durable Goods Orders showed a slight contraction in August, which is mostly due to exports. Again, the slowdown results in a positive for mortgage rates. 
 
The most important women in the U.S. right now (most wives will argue with this statement) Janet Yellen spoke about the economy recently. She said that our economy will be able to prevail over slowing global markets in China and Europe. She also said that she expects there to be a hike in the Fed Funds rate before the end of the year since the U.S. economy can handle the rate increase silencing people who believe that the rate hike wouldn’t happen due to the world economies. 
 
And the 2nd quarter GDP was revised to a 3.9% growth. “A lot of the growth was in inventories which could impact the 3rd quarter numbers. However personal spending was strong in the 2nd quarter, which is beneficial for economic growth as consumer spending is 65-70% of economic activity in America.” 
 
A drop in prices of mortgage-backed securities at opening on the heels of Yellen's remarks and the GDP revision pushed rates up, but they have since come back down after the unemployment data from last week. It seems people aren’t as scared of losing their money as was once thought when the world economies were plummeting.