• CMG MORTGAGE, INC. NMLS #1820
  • Cindy MacDonell
  • News
  • Market Recap: Hurricane Watch Continues, Fed Beige Book, and Mortgage Applications

Market Recap: Hurricane Watch Continues, Fed Beige Book, and Mortgage Applications

  • September 08, 2017

Mortgage rates dropped slightly this week.  Hurricane Harvey recovery is underway in Texas and the government agreed to a short-term debt ceiling extension, in part to help fund the relief effort.  Additional hurricanes are forming in the Atlantic and the Gulf of Mexico.  Mortgage application submission increased amidst rising rates.  The Federal Reserve released its Beige Book on Wednesday.

For the first time since 2010, there are now three active hurricanes in the Atlantic basin.  While Texas is recovering from Hurricane Harvey, Florida is preparing for the impact of Hurricane Irma.  Hurricane Jose is expected to follow Hurricane Irma, and Hurricane Katia is strengthening in the southern Gulf of Mexico. 

With the recent downward trend in mortgage rates, mortgage applications filed increased for the week ending 9/1.  New purchase applications are up 1.0% and refinance applications are up 5.0% for a composite increase of 3.3%.  The Federal Open Market Committee (FOMC) is scheduled to meet in two weeks and the odds of a rate hike are largely mixed.  Homeowners may be opting to refinance ahead of time, in case a rate hike does take place.

The Federal Reserve released its Beige Book on Wednesday, ahead of the policy meeting later this month.  Automotive retail sales were notably weak, with numerous districts concerned about low sales and increasing inventory.  In August, vehicle sales slowed to the lowest rate in three years.  Overall, however, the economy sustained modest-to-moderate growth. 

The FOMC meets on September 19 and 20 to discuss economic policy.  In December 2016, Fed Chair Janet Yellen projected three rate hikes in 2017.  So far, two rate hikes have taken place.  In lieu of the hurricanes and disaster relief, some analysts are expecting the third rate hike to take place later in the year at the December meeting. 

 

Sources: Bloomberg, CNN, MarketWatch, Mortgage News Daily, NBC

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185
cmacdonell@cmgfi.com

APPLY NOW
© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.