Mortgage Rates See a Better Start This Morning

Finally, we have a better start this morning. October retail sales were higher than expectations, as well as September numbers were revised upwards as well.  More evidence consumers are increasing spending - last week September consumer credit showed consumers are beginning to use credit cards more, more confidence in the consumer sector.

The November Empire State manufacturing index came in above expectations as well showing a lot of volatility.  The higher price gains not good when seen in the eyes of inflation. September business inventories however did not meet its mark.

Earlier this morning Boston Fed’s Rosengren said the Fed will increase the FF rate next month and that the Fed will not be dissuaded from moving. There is talk (always talk) from some Fed officials that there will be three rate increases in 2017. Last December the same vices announced that in 2016 there would be four increases, so there have been none.

At 11:00AM, we see the stock market positive, the 10yr steady at 2.22%, and MBSs positive, but on hold after the morning reports came out as positive as they did.

Trump wins and everyone goes crazy. Under it all there is no solid justification just yet. Infrastructure spending, re-doing trade pacts, changing Obamacare to lessen costs - all positives if they occur. Trump’s honeymoon has not even begun - in fact he is not yet married but markets are agog. I do not believe it is that easy yet, however I cannot fight what markets think and the way trends are heading.  The best bet is to look at these rates as they are still attractive, even though they are not as what they were last week or even last month.  If you have time and want to play the market, check out your risk and be careful.