Producer prices recorded their largest decline in eight months, possibly a sign the economy is losing momentum. This raises doubts about a Fed policy rate hike.
 
Consumer prices dropped in September on cheap gasoline, but prices of other goods increased. Inflation remains low, which is supportive of lower rates.
 
Conversely, jobless claims were at a 42-year low this week. However, wage growth continues to be a problem, another factor that could support lower rates. 
 
Last week saw mortgage applications spike ahead of implementation of TRID regulations. This week saw purchase mortgage applications fall by 34%.
 
More inventory may soon be hitting the housing market. Bank repossessions of foreclosures jumped 66% year-over-year in the third quarter.
 
A recent index shows residential property values increased 5.5% year-over-year in August. Many markets still have room to rise before reaching 2006 peak levels.

   
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.