Things that can move the market!

Uncategorized Feb 15, 2024

As mortgage professionals, we must deal with many things in our day-to-day business. Some of these things are controllable, some are not. One of the issues that we all have to deal with is market volatility. When the market moves, it can create a great deal of stress for us, our team, our referral partners, and of course, our clients. Interest rates can be a very emotional subject. People hate paying more, but also, fear things they don’t understand. So here are a few things we can look at to help ourselves, as well as our clients and referral partners, be aware of that may cause movement in the rate markets.

  • FED Meetings – ten times a year and they set the market for short term bank rates. They don’t have to raise or lower rates to impact the market, it can just be what they say they intend to do!
  • CPI – Consumer Price Index. Tracks inflation on typical consumer items. Inflation goes higher, rates go higher! Inflation goes lower, rates tend to follow! Once a month tracking the prior month.
  • PPI – Producer Price Index. Same as CPI but tracks costs at the wholesale level. Not as important as CPI because producer prices don’t always increase prices to the consumer.
  • Initial and Continuing Jobless Claims – Every Thursday (except holidays) we see these numbers. Higher claims mean the economy is getting worse, could push rates lower. Lower claims show the economy getting stronger and may push rates higher.
  • World Events – Stuff happens! War, Weather, political changes, or shifts in policy can often impact rates here in the US.
  • Lending Guidelines, Products, and Programs. At any point, the rules by which mortgage lending is regulated can change. From the federal level, down to state and local regulations. Sometimes without much warning, the rules can change, and rates will follow.

This isn’t everything that can move the markets, but just the ones I track on a regular basis and suggest for my clients to stay aware of. You can’t just trust the internet or social media posts to explain to you what is happening and why; it’s important that you know! If you have questions or comments, please let me know: [email protected]


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