Registered Investment Adviser Caleb Lawrence
Mortgage activity is unchanged. After struggling in early trade, the major averages enter the final hour with small gains. Consumer Credit came out after the close yesterday. The 20.8 billion Dollar gain handily beat expectations on a big jump in non-revolving credit, essentially student and auto loans. Credit card or revolving debt was the highest in 4 months with a 6.4 billion Dollar increase. Mortgage activity was unchanged last week as per the Mortgage Bankers Association or MBA. Refi activity slipped .5% while purchase apps gained .5%. The 30-year jumbo loan rate slipped fractionally to 4.12%. Despite promising to drain the swamp in Washington Trump is well on his way to demonstrating that he is just another swamp thing following his signing of a Congressional Resolution to shield the banksters from class action lawsuits by their customers. Once again score one for the corporations and their bought and paid for politicians. After promising to not only put an end to Quantitative Easing or QE and start reducing the Fed’s bloated balance sheet it seems the Federal Reserve is finally doing exactly that with a token 3.5 billion reduction in October. Considerably less than the 10 billion scheduled. With corporate debt funded buybacks on the wane and the Fed backing away from open market purchases the markets should struggle to continue the upward march.