It's jobs week with ADP Private Payrolls on Wednesday and the government's Jobs Report on Friday. In addition, the ISM National Manufacturing Index will be released and may give some clues on the current slowdown in the sector. If a trade agreement is reached between the US and China, some of the weakness in the manufacturing will most likely be alleviated. If a trade deal is reached between the US and China, there could be upward pressure on mortgage rates.
The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have adopted a final rule that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. Given price appreciation in residential real estate transactions since 1994 when the last threshold was last updated, the change will provide burden relief without posing a threat to the safety and soundness of financial institutions.
Manufacturing activity in the Chicago are fell into contraction this month for the third time in four months as the sector continues to be impacted by the trade issues between the US and China. The Chicago PMI fell to 47.1 in September from 50.4 in August. Any reading below 50 shows contraction, above 50, expansion. The GM strike did have a hand in the declining numbers. The more closely watched ISM National Manufacturing Index will be released this week to fully gauge the sector.
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