Housing Starts Surge

Raleigh Mortgage Group Uncategorized

It was a quiet week for mortgage rates. There were no significant new developments with China or Iran, and the reaction to the economic data was small. As a result, rates ended the week nearly unchanged. A lack of inventory has been holding back home sales in many regions, so Friday’s report on home construction was very encouraging. In December, …

Wage Growth Slows

Raleigh Mortgage Group Uncategorized

Weaker than expected labor market data was positive for mortgage rates this past week, while an easing of tensions with Iran was negative. Neither influence was large, and rates ended the week nearly unchanged. Against a consensus forecast of 160,000, the economy added just 145,000 jobs in December, and revisions subtracted 14,000 jobs from the results for prior months. Average …

Manufacturing Weakens

Raleigh Mortgage Group Uncategorized

After dropping more than a full point from the end of October in 2018 to the end of October in 2019, mortgage rates barely changed during November and December. Several factors have affected rates over the past year, including economic data, Fed policy, and the trade negotiations with China. Overall, recent economic data has suggested that growth in 2020 will …

Impressive Job Gains

Raleigh Mortgage Group Uncategorized

While news about the trade talks caused some volatility this week, the primary influence on mortgage rates was Friday’s labor market data. Stronger than expected job growth was unfavorable for rates, and they ended the week a little higher. Against a consensus forecast of 185,000, the economy added a massive 266,000 jobs in November. In addition, revisions added 41,000 jobs …

Increased Optimism on Trade

Raleigh Mortgage Group Uncategorized

The trade negotiations with China dominated the economic news this week. Unexpected signs of progress in reaching a deal were unfavorable for mortgage rates. Stronger than expected economic data also was negative, and rates climbed to the highest levels since late July. On Thursday, a Chinese trade official said that both sides have agreed to simultaneously remove some existing tariffs. …

Strong Job Gains

Raleigh Mortgage Group Uncategorized

Although this week’s economic events didn’t appear to support it, there was a decline in mortgage rates. To understand why, it is necessary to consider their movement over a longer time frame. In short, rates are nearly unchanged from their levels at the start of October. While the economic data, comments from the Fed, and trade news continued to influence …

Home Sales Slip

Raleigh Mortgage Group Uncategorized

A light batch of economic data caused little reaction this week, and Thursday’s European Central Bank meeting also had just a minor impact. As a result, mortgage rates ended the week nearly unchanged.  The most significant economic data released this week came from the housing sector. In September, sales of previously owned (existing) homes, which make up about 90% of …

Brexit Vote Nears

Raleigh Mortgage Group Uncategorized

Investors were mostly focused on international events this past week, but there was little fresh news on the trade negotiations with China or the British exit from the European Union. The major economic data was mixed and had little impact. As a result, mortgage rates ended the week nearly unchanged.  After a lack of success for over three years, another …

Potential Trade Deal

Raleigh Mortgage Group Uncategorized

Increased optimism about a trade deal was negative for mortgage rates this past week. The economic data and the news from the Fed had little impact, and mortgage rates ended the week higher.  The trade talks between the U.S. and China resumed on Thursday, and comments from officials have suggested that the two sides are close to reaching a limited …

Economy Slows

Raleigh Mortgage Group Uncategorized

The major economic data released this week was mostly weaker than expected, which reduced the outlook for future inflation. This was positive for mortgage rates, and they ended the week lower. As expected, Friday’s key monthly Employment report was consistent with a slower pace of job creation from the very strong levels seen over the last couple of years. Against …