We are Economics “junkies” – and the latest reports that Durable Goods Orders in the US were much Lower than expected points towards lower Mortgage Rates to follow. Mortgage Interest rates typically follow “bad news” in the Economy. According to the most recent reports:
New orders for long-lasting U.S.-made manufactured goods rose by a much less-than-forecast 0.1 percent during November and a key gauge of corporate appetite for investment also unexpectedly shrank, government data showed in a report on Thursday.
Separately, total applications for U.S. jobless claims rose by 1,000 last week, while the number of longer-term unemployed rose to its highest in more than two years, the government said Thursday.
From the Richmond Fed: Manufacturing Activity Pulled Back in Nov; Expectations Waned
In Nov, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — lost nine points, settling at −6 from Oct’s reading of 3. Among the index’s components, shipments fell seventeen points to −9, the gauge for new orders moved down four points to end at−8, and the jobs index subtracted six points to end at 3.
Hiring activity at Fifth District plants was mixed in Nov. The manufacturing employment index moved down six points to 3 and the average workweek indicator lost thirteen points to end at −3. In contrast, the wage index gained eight points to finish at 12.
WHAT DOES THIS MEAN???? It means that the Holiday Shopping was created by reducing inventories – It also means manufacturers are not creating new products… This means that forecasts for a robust 4th quarter in the Economy are likely overblown. We will know more around January 10th when the retail numbers come out!
Rates should continue to head SOUTH. They will follow the economy down.
No matter WHAT your circumstances are, call us to get a quote – we close loans for people all over North Carolina because we have some of today’s best mortgage rates! A phone call to us, might save you thousands of dollars in interest!
If you are a First Time Home Buyer – there’s more than just a Rate that you need to ask questions about!
We want to help you! Do you have questions about Mortgage Rates? Call Steve Thorne at 919-649-5058 and get a quote right now