Freddie Predicts Lower Rates in the Next Two Years; Private Sector Construction Concerns

Freddie Predicts Lower Rates in the Next Two Years; Private Sector Construction Concerns

We started this piece by noting that Freddie Mac's economists wrapped up November in an unusually brief summary. Then we realized we had said almost exactly the same thing about the company's Economic and Strategic Research (ESR) Group's report last month. November's, however, was even shorter. Should we conclude that, if no news is good news, things are getting better and better? Perhaps not, but the economy does seem relatively stable. The summary noted that the 10-year Treasury Note featured the highest yields since July, largely because investors were growing optimistic that the U.S. and China might get a trade deal. But the market was also extremely volatile during the month as those hopes waned. The second week of November saw the 10-year Treasury yield plummet by nearly 15 basis points