Graph courtesy of www.FHFA.gov
After a week of political unrest in which President Obama announced plans for the U.S. to take renewed military action against terrorist groups in Syria and Iraq, the stock market has remained relatively calm, with little reactionary movement. After five straight weeks of overall gains, the Dow Jones industrial average ended the week with a modest drop.
The stock market's dip is likely more linked to speculation on next week's Fed meeting rather than jitters over potential conflict in the Middle East, while oil prices dropped. Perhaps it is too soon to tell what kind of toll increased military conflict would inflict economically.
Meanwhile, interest rates continue to cruise at low levels into the fall, staying fairly flat at roughly 4.12 percent on average. This low interest-rate trend is defying earlier 2014 predictions that a resurgent economy would raise interest rates into the 5 percent range.
Any updates at next week's Fed meeting will be telling for the mortgage industry's immediate future. The Fed's bond-buying program is scheduled to end in October, but officials say that rates will remain steady for a "considerable time," a definition certainly open to interpretation.
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