Mortgage Rates Trending Lower This Morning

Mortgage rates are trending lower this morning.  With no economic releases today, I would have imagined that there would be some movement one way or another in relationship on what had happened regarding the “no vote’ on Friday.  Surprisingly, nothing was shaking the markets.  Later this week the final Q4 GDP, personal income and spending and both consumer confidence and sentiment.

We also see this week a number of Fed officials, but it is unlikely any of them will have anything new to say - except Yellen will speak in Washington about workforce development challenges in low-income communities on Tuesday. 

Markets still holding to two more rate increases this year. On Wednesday the Brits will invoke Article 50 of the Lisbon accord that will start the two year exit process. 

Volatility increased in the equity markets last week, and I have stated several times that it looks like a correction is coming soon. The measure of volatility and the VIX was the highest this year. 

The election of Trump and Republicans holding both Houses sent stocks higher and the dollar higher. Now the first issue out of the shoot failed Friday with far right Republicans refusing to get on board. Equity investors were looking through the looking glass at roses but they should have realized there were dandelions. To expect all of the rosy things would occur, and occur quickly were Don Quixote moments. Now we have to wonder whether a meaningful tax cut will happen and those trillions of fiscal spending will happen in Trump’s first year.