Shelter Six:  Fed Cuts Short-Term Rates to Zero

March 16, 2020 by · Leave a Comment

With the coronavirus posing a dire threat to economic growth, the Federal Reserve took the dramatic step on Sunday of slashing the Fed Funds Rate by 1% to 0%. The Fed Funds Rate is the overnight rate at which banks lend money to each other and does NOT directly affect mortgage rates, which move in […]

Shelter Six:  Coronavirus Fears Drive Rates to All-Time Lows

March 9, 2020 by · Leave a Comment

Short-term and long-term interest rates of all kinds dropped to all-time lows last week due to ongoing global coronavirus fears. The Federal Reserve slashed short-term rates .5% in an “emergency” rate-cut last week and may do the same at next week’s scheduled meeting. Recent economic data has shown that the U.S. economy was performing very […]

Shelter Six:  Mortgage Rates Plummet to Lowest Level in Eight Years

March 2, 2020 by · Leave a Comment

The coronavirus has led to a massive drop in mortgage rates because global activity has slowed reducing the outlook for future inflation. In response to the uncertainty, investors have shifted holdings from the stock market to the safer bond market, which has influenced rates lower. The latest report on inflation revealed that it was already […]

Shelter Six:  Coronavirus Contributing to Low Mortgage Rates

February 24, 2020 by · Leave a Comment

Lots of uncertainty remains around how much the coronavirus will adversely affect the global economy. Investors have responded by transferring money from the stock to the safer bond market, which has led to a sharp reduction in mortgage rates early in 2020. January Existing-Home Sales matched expectations with a slight decline from December but still […]

Shelter Six:  U.S. Consumers Remain Very Optimistic

February 17, 2020 by · Leave a Comment

U.S. consumers are still buying at a fast pace as evidenced by January Retails Sales figures, which were up .3% from December and 4.4% from a year ago. U.S. consumers also remain very optimistic as last week’s Consumer Sentiment survey was at the highest point in nearly two years. Federal Reserve Chairman Powell didn’t give […]

Shelter Six:  Economy Adds 225K Jobs in January

February 10, 2020 by · Leave a Comment

The economy added an impressive 225K jobs in January, a good bit higher than the 160K forecasted. The Unemployment Rate unexpectedly increased from 3.5% to 3.6%, but this was due to additional workers entering the labor force which is a sign of strength. Average hourly earnings slightly exceeded expectations and were 3.1% higher than a […]

Shelter Six:  Mortgage Rates Fall as Coronavirus Expands

February 3, 2020 by · Leave a Comment

Investors have responded to the coronavirus outbreak by shifting portfolios to the safety of the U.S. bond market, causing mortgage rates to fall to the lowest levels since 2016. Gross Domestic Product (GDP), the broadest measure of economic activity, increased 2.1% during the 4th Quarter of 2019, which was the same growth rate as the […]

Shelter Six:  Low Mortgage Rates Stimulate Home Sales

January 27, 2020 by · Leave a Comment

December existing-home sales increased more than expected and were 11% higher than a year ago. December national median existing-home prices were up 8% over a year ago. The number of homes for sale in December fell to just a 3-month supply nationally, well below the 6-month supply considered a healthy balance between buyers and sellers. […]

Shelter Six:  Housing Starts Surge 41%

January 20, 2020 by · Leave a Comment

A lack of inventory has been holding back home sales, so last week’s report on home construction was very encouraging. In December, housing starts rocketed 17% from November, which completely blew away the consensus forecast, and was the best level since 2006. Housing starts were a massive 41% higher than a year ago and the […]

Shelter Six:  Bankruptcy to a Mortgage in Only One Year

January 13, 2020 by · Leave a Comment

January’s Employment Report was a little weaker than expected with the economy adding 145K new jobs (160K were expected). Despite the January setback, job gains have averaged a very impressive 184K per month over the last three months. The report indicated that hiring is very strong right now in retail and construction, but weaker in […]

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