Economic growth in the first quarter of 2016 has been cut sharply in the past month led by weak trade abroad, weakness in retail sales, lower inventories and a slide in manufacturing. The Atlanta Federal Reserve reports that Gross Domestic Product (GDP) in the first quarter of 2016 is expected to rise by a meager 0.1%. Some forecasting models are seeing a negative number for Q1 GDP being reported on April 28.
Corporate earnings season will kick off on Monday afternoon with aluminum maker Alcoa set to unofficially start the festivities after the close of trading. Most analysts have forecasted lower numbers due to the slowdown in growth in the first quarter of 2016. It will now be somewhat easy for companies to beat estimates with the bar set so low. It is expected that earnings for S&P 500 companies will decline by 7.4% compared to the same period last year.
JPMorgan Chase CEO Jamie Dimon released his yearly letter to shareholders last week asking why is the bank still in the mortgage business? Mr. Dimon said that the mortgage business can be volatile and has experienced low returns in origination and servicing. In addition, Dimon says new regulations have added both sizable costs and higher capital requirements. Mr. Dimon went on to say that with the new regulations, "It is now virtually impossible to make a mistake, and as you know, the price for making an error is very high." So why does the bank stay in the mortgage business? Mr. Dimon says it's for his customers, as their home is their single largest purchase they will make in their lifetime.
Tim Carroll at CMG Financial agrees that purchasing a home is also one of the most important decisions a person will make in their lifetime. And that’s why, as the Branch Manager, Tim believes that you should compare the large bank rates with your local mortgage company.