Neighbor Sam sent the article "Redfin launches a service to compete with Zillows valuation estimator". I strongly believe feet on the ground in a hyper local market beat supercomputer algorithms. Thanks Sam
From Stuart Crawford at VIP Mortgage -
"As we know, mortgage rates are affected by many different market forces. Most often it is economic data and its impact on the outlook for inflation. Last week, the biggest influence on mortgage rates came from the drop in the price of oil and its effects on the stock market. Stocks declined, and mortgage rates ended the week a little lower.
The price of oil declined during the week to the lowest level in seven years. This is great for consumers, but has mixed effects on financial markets. The drop weighed heavily on energy stocks and concerns spread throughout the broader stock market. Investors sold stocks and bought safer investments like government-backed mortgage-backed securities (MBS). This added demand for MBS pushed mortgage rates slightly lower.
The Retail Sales report showed a solid improvement in consumer spending, likely due to more cash in our pockets from lower gas prices (coming off the heels of three disappointing months in a row). This data has always been a key indicator, as consumer spending accounts for approximately 70% of economic output in the U.S.
This week, the highly anticipated Fed meeting will take place on Wednesday. If the Fed raises the federal funds rate as widely expected, investors will be looking for guidance about the pace of future rate hikes."
Stuart can be reached at 480.776.2954