Small improvement for the week, enough to get us back into the 5's.

Happy Friday from Local Mortgage!

With the lack of economic data due to the government shutdown, market trading was fairly limited, and rates didn’t move a lot, but we got just enough improvement to push us back into the 5s with no points. We will end the week at 5.875% for our best 30-year fixed conventional scenario.

The biggest piece of data came from the University of Michigan consumer sentiment report which revealed that consumers remained concerned about the economy, still nervous about the impact of tariffs and now we add the government shutdown to the list of concerns.

Also, of note this week was the release of the minutes from the September FED meeting which confirmed that nearly all of the FED officials supported September’s 25-basis point cut, however, there were a few officials that would have been ok with no cut. Officials were split on their forecasts for further monetary easing with about half in favor for two more rate cuts in 2025 with the other half suggesting that rates be cut only once more this year.  

With the government shutdown, there may not be any economic data released next week. There was a pretty sharp rally late Friday on talks of increased tariffs on China so we could have an active Tuesday when markets reopen. We will see if that carries over the 3-day weekend.

Hope everyone has a great weekend and thank you for reading.