It might not be much news to the general public but for those whose job it is to follow economic trends today there was confirmation of a number released a few months ago. The GDP number for the second quarter was not only confirmed for the second time but revised upward. Twice. The first GDP number for Q2 came in at 4.0%, then 4.2% and finally 4.6%. Even if you don’t pay much attention to economic reports if you’re in the middle of a mortgage application it might be time to lock in that rate.
Good news typically means rates go up. Oh, there’s more. Consumer Sentiment for September rose yet again and this time to a 14-month high. Consumers are buying more and feeling better about it. If you’re one of those who are hoping interest rates will fall yet again so you can finally refinance your mortgage to a lower rate you can forget about it. The only way rates will tip toward record lows once again is the result of a series of some very, very bad things happening in the economy.
And quite frankly, we’re all tired of that. Bad news brings low rates and it’s time to put the bad news in the trash can. The next big report will be next Friday when the unemployment rate and job creation for September is released. Oh, and the Fed’s money-printing-machine financing QEIII will end in October, too. Rock on, economy. See ya later, low rates.