All through our economic commentaries we always are fearful of making predictions. No matter how much information we have, there are always unknown factors which can change the future to a significant degree. There is no better example of this than what Texas and Louisiana just faced with Hurricane Harvey. An entire region of our country devastated with an amazing amount of support pouring in throughout the country.
There is no doubt about the fact that this natural disaster will have a major effect upon our economy — as well as Irma and whichever storms follow. From the devastation of local economies to gas prices, there will be a multitude of factors we will be facing. In the long-term there will be an economic revival as we rebuild lives, houses and infrastructure. We have rebuilt successfully before and we will rebuild again. America has always demonstrated our resiliency.
However, there are major questions which will remain far beyond this event. For example, we all know that houses are expensive to build and “excessive” regulations are part of that equation. On the other hand, as the insurance companies continue to point out, the lack of adequate building and zoning standards in some areas of the country have increased the cost of rebuilding significantly. In other words, we have some very hard questions to address, questions which are very difficult to answer. And coming out with the right answers will help us pass this test in the future long after we rebuild this time around.
The Weekly Market Update
Rates on 30-year fixed loans hit their lowest levels of the year for the third straight week. For the week ending September 7, Freddie Mac announced that 30-year fixed rates fell to 3.78% from 3.82% the week before. The average for 15-year loans decreased to 3.08%, and the average for five-year adjustables moved up one tick to 3.15%. A year ago, 30-year fixed rates averaged 3.44%.
Attributed to Sean Becketti, chief economist, Freddie Mac — “The 10-year Treasury yield fell 9 basis points this week, reaching a new 2017-low for a second consecutive week. The rate on 30-year loans followed, dropping 4 basis points to a year-to-date low of 3.78 percent.”
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.