August 6, 2019
The first week in August was a block buster in terms of economic news. First, we had a reading on personal income and spending for the month of June. This report showed that consumers were still spending, but at a lower rate compared to the previous few months. This was the last major data released before the Federal Reserve Board released their decision to lower their benchmark rates by .25%, the first cut in a decade. This decision was not unexpected, with the majority of experts expecting this decrease. However, the markets were disappointed that the Fed’s statement did not open the door wider for future increases.
The week ended with the jobs report for July. As we have pointed out, the employment data has been erratic recently and this month was an exception. The increase of 164,000 jobs was right on expectations and consistent with the lower rate of growth this year as opposed to last year. The headline unemployment rate came in at 3.7%, which was unchanged from the previous month. The previous two months of data were revised downward by 41,000 jobs.
Yes, it was quite a week. Overall, the news shows that the economy continues to grow, albeit at a slower pace. The first reading of economic growth for the second quarter was 2.1% and the markets were rocked by the threat of more battles on the trade front. The question is–did the Fed move too slowly in light of this most recent data? Only time will tell. For now, interest rates are at a level which will continue to stimulate the economy which is good news for consumers purchasing big ticket items such as cars and homes — and refinancing the loans they took out just last year.
Source: Origination Pro
Federal Reserve lowered interest rates. Great time to refinance real estate. Call now for a fast, friendly quote on a home loan or to finance an commercial property or multi-family building.
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