Market Commentary – 4/29/16

Equity markets closed out the week lower with the worst weekly sell-off since the earlier part of the year. Here in the U.S., the Federal Open Market Committee prepared statements that continue to ensure low interest rates. With inflation tame and anemic global economic growth, the chances for a June rate hike are currently pegged at 15%. The U.S. economy is performing well in some respects but continues to struggle in others. By the Fed’s own assessment, growth and consumer spending have slowed despite gains in income and employment and a strong housing market.

Mortgage interest rates remain attractive with the 10-year Treasury Note trading at 1.83%. As previously stated, we continue to be biased toward locking in interest rates with rates this low, with the awareness that interest rates could go lower given all of the economic and political uncertainty.