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The 2016 Presidential Election

November 8, 2016

Last week we spoke of “the really big shew” and today is the headline performance — The Presidential Election. First, let’s do a review of the preliminary acts. On Monday of last week, we had a release of the personal income and spending numbers. While they were in line with expectations, the personal spending numbers were especially strong. Taken together with a stronger than expected data on the growth of the economy for the third quarter, the numbers increase the probability of the Federal Reserve Board raising rates in December.

Indeed, when the Fed met and released their announcement on Wednesday, they indicated that they would not be raising rates this month as expected, just a few days before the election. However, the statement clearly indicated that a possible increase was on the table for December. Of course, the most important data was released on Friday after the Fed meeting. The jobs report showed an increase of 161,000 jobs in October. The report also indicated that the September numbers were revised upward by 35,000 jobs and the unemployment rate slipped down to 4.9%. Finally, wages grew at a faster pace, something the Fed is looking closely at.

Taken together with the earlier data we cited, this means that a December rate increase is definitely in the cards. While we are not expecting the results of the election to affect the chances of a rate increase in December, we are pretty certain that the election being over does increase the chances. This is especially true with the Presidential inauguration being just before the first meeting of the Fed next year. Theoretically, a new President in office should not affect the actions of the Fed, but certainly that sort of welcome would be ill-timed.

Source:  Origination Pro

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Testimonials

Eli N

Benny and Phil were great to work with! they assisted us in every aspect of the process even when it wasn’t their job. They explained every step and guided/advised us on the best course of action. Their fees were more than fair and their integrity was at a level far above ANY lawyer or mortgage broker we have ever dealt with.

Joe D.

Philip Loria made the mortgage process quick and easy, and also found ways to save us money. He was always on top of things, very accessible, and his communication is top notch. I will recommend Philip Loria and Amerimutual Mortgage highly to any of my friends, family or colleagues.

Joe D. Long Island, NY
Ninfa Brusca

Philip and Benny Loria were very knowledgeable and professional. They exceeded all our expectations and were a pleasure to work with. They were both were just genuinely nice guys. They listened to all our concerns and did everything in their power to accommodate our needs and make feel comfortable throughout the whole mortgage process. I recommend Amerimutual Mortgage to anyone who is looking for a mortgage.

Ninfa Brusca Tuckahoe, NY
Lenny P., Occupation: Real Estate Development

Richard, I wanted to thank you for all your help and hard work. I am so glad our refinance was a success. You were very diligent and dedicated to getting me the best rate possible. I truly enjoyed working with you and will recommend your services to all our friends and family.

Lenny P., Rye, New York
Nick Tsatsaronis

Philip Loria, assisted me with my refinance. Thank you so much for all of your time and hard work. You made refinancing my house easy and stress free. I wouldn’t recommend anyone else. I will definitely use Amerimutual Mortgage for any future needs, and recommend them to anyone who needs a mortgage.

Nick Tsatsaronis Flushing, NY
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