Inflation Moderates

Raleigh Mortgage GroupUncategorized

With major inflation data, the GDP report, and a European Central Bank meeting, it was a volatile week for mortgage markets. These influences were mostly offsetting, however, and mortgage rates ended slightly lower, but still remain near the highest levels in over two decades.  The PCE price index is the inflation indicator favored by the Fed. In September, core PCE, …

Retail Sales Surge

Raleigh Mortgage GroupUncategorized

While the housing market has been suffering greatly, the overall economy has remained remarkably resilient. This week, consumer spending again was much stronger than expected. As a result, mortgage rates rose sharply, reaching the highest levels in over two decades.  Despite numerous headwinds such as higher prices and credit card rates, consumer spending has continued to exceed the forecasts of …

Mortgage Rates Ease

Raleigh Mortgage GroupUncategorized

The events in the Middle East were the dominant influence for mortgage markets this week, while the highly anticipated inflation data came in close to the expected levels. As a result, mortgage rates ended lower, falling from the highest levels in over two decades.  In response to geopolitical events such as the war in Ukraine which create uncertainty and could …

Huge Job Gains

Raleigh Mortgage GroupUncategorized

The major labor market data released this week was significantly stronger than expected. As a result, mortgage rates continued to rise, reaching levels not seen in over two decades.  In September, the economy added a massive 363,000 jobs, far above the consensus forecast of 160,000, and the results for prior months were revised considerably higher. Service-related industries contributed 234,000 jobs …

Surging Rates

Raleigh Mortgage GroupUncategorized

At the start of September, mortgage rates were close to the levels at the start of March and November. In other words, they were high, but they were still well within the range seen over the past year. Rates have climbed significantly higher this month, however, reaching levels not seen in decades.  There are several reasons for the breakout in …

Fed Projections

Raleigh Mortgage GroupUncategorized

At the highly anticipated meeting on Wednesday, Fed officials confirmed their outlook for short-term rates to remain at elevated levels for quite a while. While this was not much of a surprise, the news caused mortgage rates to climb to their highest levels in decades. As expected, the Fed made no change in the federal funds rate, and the statement …

Energy Prices Rise

Raleigh Mortgage GroupUncategorized

The major inflation data released this week was heavily influenced by higher energy prices, but it was essentially in line with expectations. Similarly, consumer spending reflected the increase in gas prices and revealed no significant surprises in other areas. Mortgage rates ended the week slightly higher. The Consumer Price Index (CPI) is one of the most widely followed inflation indicators. …

Labor Market Loosens

Raleigh Mortgage GroupUncategorized

The major labor market data released last week suggested that extremely tight conditions may be loosening more quickly than anticipated. This was favorable news for mortgage markets, and rates ended the week a little lower, down from the highest levels in decades. The latest key Employment report was a bit weaker than expected overall. Job growth continues to slow from …

Focus on Fed

Raleigh Mortgage GroupUncategorized

Heading into the highly anticipated speech from Fed Chair Powell on Friday, mortgage markets were essentially unchanged for the week. In contrast to the large negative reaction last year, there was little movement this time, and mortgage rates remain near their highest levels in decades. Powell revealed no significant new information to guide investors on future monetary policy. Investors are …

Inflation Matches Expectations

Raleigh Mortgage GroupUncategorized

Without a doubt, the biggest consideration for mortgage rates right now is the progress in the battle to tame inflation. The latest major inflation data was right in line with expectations, however, leaving investors to focus on Japanese monetary policy and U.S. government spending. These secondary influences were negative for mortgage rates, which ended the week a little higher. The …