How is the Market doing?

What’s Happening?

Stock market indexes were mixed with little change to either these or the bond market. This lack of activity is not surprising as investors were likely spending more time observing political activity rather than tracking economic news and 4th Qtr. earning reports–many of which were very positive and exceeded expectations.


Various Fed. presidents, who are voting members of the Federal Open Market Committee (FOMC), made statements around the future of interest rates. Charles Evans, the Chicago Fed. President indicated that the pace of interested increased needed to be slow given the current circumstances. Meanwhile, the San Francisco Fed. President Williams came out to say that three rate hikes were reasonable in 2017. Based upon the latest CME Group 30-day Fed. Fund future prices, the current probability of a March 15 rate hike of 25 basis points is 13.3%, a May 3 rate hike is 35.5% and a June 14 rate hike is 68.2%.


Cash-Out Loans help with High-Ticket Items

If you, or one of your clients, are approaching a major expense a cash-out loan lets you leverage your home’s appreciation without having to sell. Whether it’s funding college, a down payment on an investment home or a kitchen remodel, a cash-out loan enables you maintain a lower rate than a home-equity loan or most credit cards. It’s your money–you might as well use it while rates are still historically low.


Geoffrey Davis, Mortgage Loan Consultant

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