Today marks the 30th anniversary of Black Monday, where the DOW dropped 22.6% in a single day—the largest decrease ever in the U.S. equities market.  That 22% back in 1987 was 508 points.  Since then, the index has grown almost 1000%.  For the last few years,stocks have continued to hit new highs, capped off by the DOW closing above 23,000 for the first time ever just yesterday.  While measures have been taken to ensure that markets don’t crash like they have in the past,  one wonders how long the current bull market will last.  

In their Beige Book publication yesterday, the Fed noted that employment growth, economic activity, and inflation remain “modest”.  Looking toward the future, many feel that when Janet Yellen’s six-year term expires next February, President Trump will appoint a new Fed Chair who is quicker to raise interest rates.  Should that happen, Ms. Yellen would be only the third Chair in the last 84 years whose reign was limited to one term.  Her dismissal would also create the fourth vacancy in the Open Market Committee’s 12 seat boardroom.  Where the Commander in Chief appoints these Fed Governors, the future of interest rates really does lie in the palms of the current President’s tiny little hands. 

Speaking of prices and appreciation, the above graphic shows the history and anticipated future of home prices across the Wasatch Front.  Pretty interesting stuff if you are a homeowner.  Across the country for 30 Year fixed rates loans, the average FHA rate is 4.0% with .37 paid points; Jumbo loans are at 4.13% with .32 paid points, and Conventional is at 4.14% with .44 paid points.