Inflation | Spending | Stocks

Mortgage and Lending with Benchmark Home Loans 173024

The Fed's favorite inflation gauge, the annual Core PCE, was unchanged in September at 2% while month over month saw a rise of 0.2%, just above the 0.1% expected. Inflation pressures have remained contained and the Federal Reserve will have to look closely at future inflation data ahead of the December Federal Open Market Committee meeting. Remember, the Federal Reserve has forecasted Core PCE to run near current levels through 2021. If that forecast is accurate, long-term rates like mortgages, can't move too high.

Consumer spending rose in September, a good sign that Americans have the confidence in the economy and the job market to continue to spend their hard-earned dollars. Personal Spending rose 0.4% in September, above expectations while August was revised higher. That is a positive sign heading into the holiday shopping season as retailers look to ring up brisk sales in a strong U.S. economy.

U.S. Stocks begin the final days of October higher though the month has seen the Dow, S&P and NASDAQ fall from the all-time highs hit in September. The Dow Jones Industrial Average has declined 6.5% in October, the S&P has fallen 9% while the tech heavy NASDAQ is down 11% due in part to tariff issues, geopolitical headlines, mixed earnings in the industrial and tech sector along with profit taking. However, the U.S. economy remains strong and Stock market corrections, when prices are at all-time highs, are normal and healthy.

Posted by

Steve Reed

Benchmark Home Loans

Branch Manager

NMLS #173024

Ark-La-Tex Financial Services, LLC NMLS #2143 

4138 Bristol Highway, Suite #4

Johnson City, TN 37601

Phone 423-232-0111

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Comments (2)

Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

What a wild ride in the market today. Up 300+ points, down 500+ almost 900 point swing. Volatility is back in a big way.

Oct 29, 2018 02:33 PM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Steve,

That is pretty good news then. So long as people continue to buy homes too, I am good.

Oct 29, 2018 03:50 PM