May is National Physical Fitness and Sports Month – a great time to promote the benefits of an active lifestyle. Physical Activity Guidelines recommend that adults:
- Incorporate two hours and 30 minutes of moderate aerobic activity each week (such as walking fast, dancing or swimming)
- Include muscle strengthening (lifting weights or using exercise bands) at least two days a week
Here’s to engaging in healthier lifestyle activities – and realizing positive results.
Sincerely,
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| Jackie A. Fowler |
| NMLS #546304 |
| Mortgage Loan Originator |
| 469 W. 23rd St. |
| Panama City, FL 32405 |
| p - 850.872.7155 |
| c - 850.814.8390 |
| f - 877.742.7693 |
| jackie.fowler@regions.com |
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Europe Influences U.S. Markets
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| Average 30-year fixed rate |
| Week of 04/28 +0.02% |
| Week of 04/21 ±0.00% |
| ---------------------------- |
| Stocks (Weekly) |
| Dow: 21,237 +400 |
| NASDAQ: 6,199 +150 |
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Last week, mortgage rates were influenced mainly by events in Europe. The outcome of the April 23 French election was bad for mortgage rates, while the European Central Bank meeting was mildly positive. U.S. economic data had little impact. Mortgage rates ended last week a little higher.
One pro-EU candidate (Emmanuel Macron) and one anti–EU candidate (Marine Le Pen) won the first round of the French Presidential election and will compete in the second round on May 7. Polls indicate that Macron is heavily favored to win the second round, reducing some concerns that France will leave the European Union. Investors reacted by reversing the flight to safety trade, which took place ahead of the election. This means that they shifted back to riskier assets such as stocks and out of safer assets such as mortgage-backed securities (MBS). The increased supply of MBS causedmortgage rates to rise.
On April 27, the European Central Bank (ECB) made no policy changes, as widely expected. The tone of ECB President Mario Draghi was more dovish than anticipated, however. Some investors had worried that ECB officials might hint at a reduction in bond purchases by the ECB. The fact that they did not was good news for mortgage rates.
The first reading for first quarter U.S. gross domestic product (GDP) was 0.7%, below the consensus of 1.1% and down from 2.1% in the fourth quarter of 2016. This was the slowest quarterly growth in three years. Weak consumer spending and a decline in inventories were a couple of the primary factors in the shortfall.
These components are volatile on a quarterly basis, and many economists believe that the weakness in the first quarter simply pushed some economic activity into later quarters. As a result, the report had little impact on mortgage rates.
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| THE WEEK AHEAD |
| The coming week will be a busy one. The next Fed meeting will take place on Wednesday. No change in rates is expected, but investors will be eager for guidance on the pace of future tightening. The key monthly Employment report will be released on Friday. Before that, important data on inflation, manufacturing, and services will be released. In addition, news about policies from the Trump administration or about the French election on May 7 could influence mortgage rates. |
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