European Central Bank Postpones Decision There were few surprises in economic news over the past week. Mortgage rates ended the week slightly higher, and neither central bankers nor recent data caused much market reaction in the U.S.
Bond purchases by central banks around the world have helped mortgage rates decline in recent years. As a result, comments from global central bankers often have a significant affect on U.S. mortgage rates. This was not the case for the October 20 European Central Bank (ECB) meeting, however. The ECB made no policy changes, and ECB President Draghi unexpectedly signaled to investors that they will have to wait until the next meeting onDecember 8for new guidance on monetary policy. He said that the ECB will decide at that meeting whether to extend the bond purchase program, which is currently set to end in March. Most investors expect that the ECB will announce an extension to the program.
The recent U.S. housing data has been encouraging. In September, sales of previously owned homes rose 3% from August and are near the highest level since 2007. This took place despite a shortage of inventory in many regions. Sales of previously owned homes make up roughly 90% of the housing market. Sales of newly built homes also rose 3% from August and also are near the highest level since 2007. They were 30% higher than a year ago.
Looking ahead, several significant U.S. economic reports will soon be released, followed by two central bank meetings. Durable Orders will be releasedon Thursday. Third quarter Gross Domestic Product (GDP), the broadest measure of economic growth, will come outon Friday. The Core PCE price index, the inflation indicator favored by the Fed, will be released onOctober 31. A Bank of Japan (BOJ) meeting will take place onNovember 1. The next U.S. Fed meeting will take place onNovember 2, but no change in policy is expected.
Hurricane Harvey continues to keep people out of their homes. Experts
""Kristina was an excellent realtor, She worked tirelessly to make sure that any and all questions were answered quickly and that I was always fully aware of what was taking place during the process. I would definitely recommend her to anyone I knew that was looking to buy or sell a home."