MARKET UPDATE:

Our economy, while strengthening, really should be rolling along a lot better than it currently is. The Fed has kept interest rates effectively near zero and the last interest rate increase was nearly a decade ago. So what can we expect heading into the final quarter of 2016? Is it time to lock in that rate or maybe waiting to see if rates will move down even further?

The possibility of the Fed lowering rates one more time is highly unlikely at this stage. If there is any move at all, it will be to gradually increase rates over time yet each time Wall Street gets wind of any rate hike rumor, stocks get hit as investors sell, fearing a rate hike will hurt the economy. That�s somewhat odd in that historically when there is good news on the economic front, stocks rally with hopes for better times yet recently when there is good news, stocks turn around the other direction. And it�s not just here in the States as markets overseas act in much the same fashion. That could indicate interest rates will remain very near where they are now well into 2017 if that thinking holds up.

Our economy is growing, as recent GDP numbers reflect positive, albeit tepid, growth. The unemployment rate for August held steady at 4.9% yet job creation for the month was lower than previous, with just 126,000 new nonfarm private jobs were created. It�s this sort of quizzical data that keeps the Fed on the sidelines. That translates into marginal rate moves as mortgage rates are stuck in this very tight range. Some industry analysts are looking at a weaker than expected Q4 GDP number yet the final GDP number won�t be released until early next year. In the meantime, it appears we�re still steady-as-she-goes.

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