A Really Big Shew
For those of you who are old enough, you might remember Ed Sullivan starting his weekly broadcast with “We have a really big shew tonight.” Well, when he said it, show did sound like “shew.” Ed Sullivan was the venue that featured Elvis Presley, the Beatles and countless other acts for a generation. Well, this week we have a really, really big week — one that has the potential to significantly affect the markets. We start out with important data, personal income and spending. We then move into a two-day meeting of the Federal Reserve Board’s Open Market Committee.
While most are expecting no action by the Fed, the announcement on Wednesday will be studied carefully for any indication regarding a potential rate increase at their December meeting. Of course, the Fed will not have had the benefit of seeing the most important data released. On Friday we will see a jobs report which will let us know about the all-important employment situation. The Fed will actually have the benefit of seeing two jobs reports before their meeting in December.
And just for good measure, after what seems to have been years of campaigning and an endless number of debates and stories in the press, we will finally have a Presidential election. No matter who wins the election, we think it is safe to say that most Americans will be glad that the ordeal is over. And no matter who you favor, don’t forget that exercising your right to vote is an important duty and responsibility as a citizen of our great country. So, please get out and exercise that right by voting, both for your national candidate and your state and local candidates as well.
The Weekly Market Update
Rates eased back in the last week, keeping rates within the same range as the past few months. For the week ending October 27, Freddie Mac announced that 30-year fixed rates fell to 3.47% from 3.52% the week before. The average for 15-year loans also decreased slightly to 2.78%, and the average for five-year adjustables fell one tick to 2.84%. A year ago, 30-year fixed rates were at 3.76%, more than one-quarter of one percent higher than today's levels.
Attributed to Sean Becketti, Chief Economist, Freddie Mac -- "Rates on home loans continue to be relatively stable and at near record lows. The 30-year fixed-rate fell 5 basis points week-over-week to 3.47%, erasing last week's increase. At the same time, the 10-year Treasury yield ended the week relatively flat -- up about 2 basis points."
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.