Market Updates

Weekly Economic Update: October 24, 2022

• Yields finished the week mixed with the two-year Treasury note falling by one basis point to 4.50% while the five-year note increased by eight basis points to 4.35%

• Existing home sales fell for an eighth consecutive month as rapidly rising mortgage rates, now around 7%, continue to erode affordability and price a larger percentage of would-be buyers out of the market

• Housing starts fell 8.1% in September as homebuilder sentiment dropped to a ten year low with developers facing high costs to operate, labor shortages, and plummeting demand, the outlook is particularly adverse for single family homes with permits falling 17% from a year ago

• The FOMC meets next Tuesday and Wednesday where market participants widely expect another Fed funds rate hike of 0.75% as the committee continues to focus their ongoing policy tightening campaign on bringing down inflation

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