GDP Posts Expected Decline

Raleigh Mortgage Group Uncategorized

This week’s historic GDP report and key Fed meeting produced results that were right in line with investor expectations and caused little reaction. Mortgage rates dropped slightly to fresh record low levels. Gross domestic product (GDP) is the broadest measure of economic growth. Investors have long been braced to see a massive decline of around 35% for the period from …

Housing Sector Shines

Raleigh Mortgage Group Uncategorized

During a light week for economic data, investors remained focused on the troubling spread of the coronavirus in many regions. Daily volatility in mortgage markets was small, and rates held relatively steady near record low levels. The most significant economic data released this week came from the housing sector, and it again revealed that the recovery has been much faster …

Consumer Spending Surges Again

Raleigh Mortgage Group Uncategorized

While the most significant economic data was stronger than expected this week, investors remained more focused on the concerning spread of the coronavirus in many areas. Mortgage rates dropped slightly to fresh record low levels. Due to the shutdown of much of the economy to combat the pandemic, consumer spending dropped sharply in March and April. A swift rebound has …

Exceptional Job Gains

Raleigh Mortgage Group Uncategorized

The big economic news this past week was a second straight Employment report which far surpassed expectations. Nearly all of the recent data has indicated that the recovery from the partial shutdown of the economy due to the pandemic has been faster than anticipated. Despite the strong data, though, it was another quiet week for mortgage markets, and rates remained …

Fed Helps Bonds

Raleigh Mortgage Group Uncategorized

While it was a volatile week for stocks, the mortgage market remained relatively calm. Wednesday’s Fed meeting contained favorable news for bonds, and mortgage rates ended the week lower. Since the middle of March, the Fed has bought over $2 trillion in Treasuries and mortgage backed securities (MBS) to help support the economy and to maintain market stability, but it …

Stunning Job Gains

Raleigh Mortgage Group Uncategorized

There’s no doubt that the biggest economic news this week was Friday’s unbelievably strong labor market report. This was positive news for the stock market, but it caused mortgage rates to end the week a little higher. For perspective, typical monthly readings were for job gains of around 200,000 in 2019. In April, the economy lost a staggering 20 million …

Inflation Drops

Raleigh Mortgage Group Uncategorized

While the stock market posted nice gains this week, mortgage markets were relatively quiet. Daily volatility remained low, and the change in rates for the week again was small. One consequence of the reduced economic activity resulting from the pandemic has been a decline in inflation, which has helped keep mortgage rates low. In April, the core PCE price index, …

Housing Activity

Raleigh Mortgage Group Uncategorized

The housing data released this week confirmed that the anticipated massive decline in activity in April took place. However, there also were several encouraging signs that a substantial rebound already has begun. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. In April, existing home sales fell 18% from March to …

Retail Sales Plunge

Raleigh Mortgage Group Uncategorized

The closely watched Retail Sales report released this week showed that consumer spending dropped even more than anticipated in April. Fed Chair Powell repeated the message that the Fed will use all its tools to support the economy. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. With much of the …

Unemployment Rises

Raleigh Mortgage Group Uncategorized

The closely watched monthly Employment report released this week contained the anticipated levels of historic job losses. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. Friday’s Employment report revealed a massive loss of 20.5 million jobs in April, which was close to the consensus forecast. The unemployment rate jumped from …