Upside Surprise in Inflation

Raleigh Mortgage Group Uncategorized

The driving force behind the movement in mortgage rates in recent months is clear, and the latest news was not favorable. In the highly anticipated CPI report, inflation was much higher than expected, and mortgage rates predictably climbed. The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at price changes for a broad range of goods …

ECB Raises Rates

Raleigh Mortgage Group Uncategorized

During a light week for economic data, investors were focused on U.S. and European central bankers. There were no surprises from the European Central Bank (ECB) or U.S. Fed Chair Powell, however, and mortgage rates ended the week with little change. With inflation surging to decade highs, the ECB raised interest rates by a massive 75 basis points to the …

Mixed Labor Market Data

Raleigh Mortgage Group Uncategorized

Investor concerns about stubbornly high inflation levels and the aggressive response by global central banks increased last week, while the major economic reports were roughly neutral overall. As a result, mortgage rates ended the week higher. The closely watched Employment report released on Friday revealed mixed results. Against a consensus forecast of 320,000, the economy gained 315,000 jobs in August, …

No Surprises from Powell

Raleigh Mortgage Group Uncategorized

Neither a speech from Fed Chair Powell nor the economic data caused much reaction this week. Mortgage rates ended a little higher. In a highly anticipated speech from the Jackson Hole economic summit, Fed Chair Powell warned that the consequences of not fighting inflation aggressively enough would be worse than the effects of tighter monetary policy, which could include “some …

European Inflation Surges

Raleigh Mortgage Group Uncategorized

The inflation data in Europe released this week revealed sharp increases, which caused global bond yields to rise, including U.S. mortgage rates. The U.S. economic news had little impact. While inflation in the U.S. has been moderating a bit recently, it has surged to record levels in Europe. The latest report from the European Union revealed a massive annual rate …

Inflation Moderates

Raleigh Mortgage Group Uncategorized

Two opposing forces influenced mortgage markets this week. Lower than expected inflation data was very welcome news to investors, but an aggressive tone from the Fed was not. The net effect was that mortgage rates ended the week nearly unchanged. The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at price changes for a broad range …

Strong Job Gains

Raleigh Mortgage Group Uncategorized

Stronger than expected economic data was unfavorable for mortgage markets last week. In particular, the key labor market report far exceeded the forecasts, and mortgage rates ended the week higher. The closely watched Employment report released on Friday displayed unexpected strength nearly across the board. Against a consensus forecast of 250,000, the economy gained 528,000 jobs in July. The best …

GDP Declines

Raleigh Mortgage Group Uncategorized

Economic growth during the second quarter was weaker than expected, which was favorable for mortgage markets this week. The Fed meeting revealed no surprises and caused little reaction. As a result, mortgage rates ended the week a bit lower. As expected, the Fed raised the federal funds rate by 75 basis points on Wednesday, matching the largest increase since 1994 …

ECB Meeting Lowers Rates

Raleigh Mortgage Group Uncategorized

During a light week for economic news, the biggest event was the European Central Bank (ECB) meeting. The ECB surprised some investors with its aggressive move to tighten monetary policy to fight inflation, which was favorable for mortgage markets. As a result, mortgage rates ended the week lower. On Thursday, the European Central Bank (ECB) raised rates by 50 basis …

Solid Job Gains

Raleigh Mortgage Group Uncategorized

This week, the highly anticipated Employment report released on Friday was a little stronger than expected, while the other major economic data was mixed. As a result, mortgage rates ended the week higher. Against a consensus forecast of just 250,000, the economy added 372,000 jobs in June, which was right in line with the gains seen over the last few …