US stocks sold off again sharply yesterday and are now officially in correction territory as measured by a 10% sell off from the all-time highs we saw just 11 short trading days ago.
The US economy expanded at a 2.1% pace at the end of 2019, but the U.S. might struggle to achieve even that modest rate of growth in the months ahead if the coronavirus isn’t contained. The government also pegged gross domestic product at 2.1% in its preliminary estimate last month. GDP is the official scorecard for the economy.
The index of pending home sales increased 5.2% in January following a decline the month prior. This was the second strongest monthly increase in over two years. The index measures real-estate transactions where a contract has been signed but the sale has not closed. It serves as an indicator for existing-home sales reports in the coming months.
Mortgage rates dropped once again to the lowest level in 3 years, as investors buy bonds dropping rates. The 30-year fixed-rate mortgage averaged 3.45%, a decrease of four basis points from the previous week. The 15-year fixed-rate mortgage also dropped four basis points to 2.95%.
With Northwest Quadrant Wealth Management, I’m Tyler Simones