Registered Investment Adviser Caleb Lawrence
Another volatile day on the street sent the major averages into the final hour mixed on little real news. Mortgage activity slipped for a second week down .8% as per the MBA or Mortgage Bankers Association with refi’s falling 2.9% while purchase apps advanced 1.2%. The 30-year contract rate for a conforming loan slipped fractionally to 4.33%, slightly higher than a jumbo loan as has been the trend for a number of month’s now.
1st quarter Gross Domestic Product or GDP estimates have risen off their lows to reach 1.3% at last count. An anemic figure to be sure as the economy just can’t seem to gain traction despite constant cheerleading, emergency level interest rates, record levels of student, corporate and auto loan debt and trillions in stimulus. Implying that employment led demand remains weak compliments of a lack of earned income.
Trumps move to deregulate the coal industry while fulfilling a campaign promise and providing an opportunity to mug for the cameras will do little to revive it as it struggles to compete with natural gas and renewables on a cost basis.
As expected the British formerly filed under Article 50 starting the 2-year divorce process from the European Union. A process that is expected to be hotly contested by both sides and could prove the beginning of the end for the European Union particularly if other member states decide to follow suit over the summer.