What a week! Mortgage lenders everywhere might have a sprained neck from following mortgage rates as volatility was the word. The Dow experienced five straight days of triple digit moves both up and down and mortgage bonds were no stranger to the gyrations. Many mortgage companies changed their rates more than once during the day. Freddie Mac’s weekly mortgage survey reported 30 year fixed rates dropped somewhat to 4.20% from 4.23% the week before. The 15 year note fell one basis point to 3.36% while the 1-Yr ARM held steady at 2.43%.
The Fed finished up its FOMC meetings without any clear guidance regarding future rate moves but that’s to be expected. It’s interesting to watch investors hang on every sentence of Fed comments only to realize, again, they don’t know anything more than they already know. The various FOMC members are either on the side of raising rates sooner or holding off until well into next year.
The final revision for Q2 GDP confirmed the rather robust growth for the period as the GDP number was increased again to 4.6% growth. The original number came in at 4.0% then later revised to 4.2%. The unemployment rate and non-farm payroll jobs count will be released this Friday and could cause quite a reaction if there are anywhere close to 300,000 new jobs created. This is in spite of geopolitical and economic events overseas.
Russia is considering seizing foreign assets it appears in retaliation for Italy seizing certain Russian assets in the country. The European economy is still on shaky ground and any asset seizure or other economic event could further weakness in the area. And while most are paying attention to Syria and activity in the Middle East, there are still other hotspots to be concerned about. It could be a rather volatile week ahead of the unemployment report and don’t forget we’re at the end of the month as well as the third quarter and investors may move money accordingly early in the week.