The Markets in Minutes

By ProVisor

  • Stocks plummeted this week as 10yr Treasury yields fell below those for 2yr bonds. The resulting inverted yield curve could indicate a coming recession.
  • Retail sales surged in July, which could ease worried of a pending recession. Inflation also picked up slightly in July as consumer prices increased.
  • Despite the recent economic data showing the economy isn’t slowing as drastically as some expected, mortgage rates remain low and could go lower.

  • Falling mortgage rates supposrt home builder confidence. According to NAHB, builder confidence for single-family homes rose one point to 66 in August. 
  • However, builders still are not proucing enough homes to meet demand. Land and labor shortages contribute to higher costs, hindering new construction.
  • Lower mortgage rates boost buyer demand, but inventory remains an issue. Newly listed properties were down 7% in July compared to a year ago.