Market Snapshot April 11, 2019
Good Thursday AM,
Bonds are under some pressure this morning. PPI, the wholesale rate of inflation, came in higher than expected. The market was looking for .02 and got .03. Also, weekly jobless claims beat expectations. We are in about the middle of the range (10-yr at 2.50%) and for the moment, there is no real direction on the next move in bonds.
For a little perspective, yesterday afternoon the FOMC minutes from the last meeting were released and showed a “majority” of members believe rates should be unchanged through 2019 with “several” stating the “rate could shift in either direction”. Some stated the rate could be raised “modestly later this year”. The minutes included concerns with slow growth in 1st quarter, weak global economy, Brexit and trade concerns. Most members did not expect the economic weakness “to persist beyond the first quarter”. “Several” members suggested inflation might not reach the Fed 2% target and “several” questioned the viability of an inverted yield curve as a predictor of a recession. The minutes also indicated a debate about the balance-sheet runoff.
And a little insight for everyone in the industry as it applies broadly, according to a report from PwC, 58 percent of recent homebuyers said that they contacted their lender for help on planning and budgeting for the home purchase, giving an opportunity to lenders to position themselves as “the trusted advisor for the end-to-end homebuying process.”
Additionally, according to the report. PwC found that 52 percent of the buyers who had received a check-in call from their lender after a loan closing were very likely to reuse their lender. On the other hand, only 23 percent of the buyers who had not received such a call after the loan closing were likely to reuse that lender’s services. MAKE THE CALL.
Make today great!