Brexit Continued, Freddie Mac says housing is on track, gas prices good
June 27, 2016
Monday – June 27
The fall out from the Brexit vote continues today as global Stock markets plunge as investors rush to the safe haven of the Bond markets. The U.S. Dow Jones Industrial Average fell over 600 points on Friday and is lower by 300 points in Monday’s trading session. The Dow, Nasdaq and S&P 500 are now all in negative territory for 2016. Stock markets hate uncertainty and the exit of the U.K. has driven many questions as to what will happen in the coming months.
Government-sponsored entity Freddie Mac released its June 2016 outlook on Monday revealing that low mortgage rates are keeping the housing sector on track, despite rapidly rising prices. On the jobs front, Freddie sees the unemployment rate averaging at 4.9% in 2016 and 4.8% in 2017. Freddie went on to say that economic growth or Gross Domestic Product is forecasted at 1.9% for all of 2016 and 2.3% in 2017.
With the July 4 weekend quickly approaching, gas prices at the pumps are at the lowest level in a decade as a glut of cheap oil is flowing through the pipelines. The national average price for a regular gallon of gasoline is at $2.30. That is $0.47 lower than last year this time. It is expected that more than 43 million Americans will take to the roads, rails, seas and skies between Thursday, June 30 and Monday, July 4, 5 million more that of Memorial Day weekend. Of that number, 84% are expected to drive to their destinations.