Consumer Spending Surges

Raleigh Mortgage Group Uncategorized

The major economic data released this week was roughly in line with the expected levels and caused little reaction. Tough talk from the Fed on fighting inflation also had little impact, and mortgage rates ended the week a bit lower.  In April, retail sales rose a substantial 0.9% from March and were 8% higher than last year at this time. …

Inflation Eases Slightly

Raleigh Mortgage Group Uncategorized

After rising steadily for months, mortgage rates paused this week and then moved a little lower. The major inflation data was roughly in line with the expected levels, and the modest decline in the annual rate was enough for mortgage rates to stabilize, at least temporarily.  The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at …

Fed and Jobs

Raleigh Mortgage Group Uncategorized

With a wide range of major economic news, it was an extremely volatile week. The actions by the Fed were in line with investor expectations and the Employment report came in very close to the consensus forecast, but mortgage rates ended the week even higher.  As expected, the Fed raised the federal funds rate by 50-basis points on Wednesday and …

GDP Declines

Raleigh Mortgage Group Uncategorized

Over the past week, the major economic data caused little reaction, and the daily movements in mortgage markets were roughly offsetting. As a result, rates ended last the week little changed.  Gross Domestic Product (GDP) is the broadest measure of economic activity. During the first quarter, GDP fell at an annualized rate of 1.4%, well below the consensus forecast for …

Home Sales Fall

Raleigh Mortgage Group Uncategorized

While it was a light week for economic data, Fed officials continued to talk tough about tightening monetary policy to fight inflation. As a result, mortgage rates climbed to the highest levels since 2010.  On Thursday, Fed Chair Powell again stressed that it is “absolutely essential” to maintain price stability for the economy to function properly. He expressed support for …

Rising Inflation

Raleigh Mortgage Group Uncategorized

Inflation concerns remained the primary focus for investors this week. The latest readings revealed additional increases, and mortgage rates rose to the highest levels since late 2018.  The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at price changes for a broad range of goods and services. Core CPI excludes the volatile food and energy components …

Unemployment Rate Falls

Raleigh Mortgage Group Uncategorized

Volatility remained high for mortgage markets this week. The major labor market and inflation data came in very close to the expected levels, however, and the daily movements were roughly offsetting. According to the weekly survey from Freddie Mac, mortgage rates are roughly 1.5% higher than they were one year ago, at the highest level since December 2018.  The closely …

Powell Surprises Investors

Raleigh Mortgage Group Uncategorized

The shockingly swift increase in mortgage rates continued this week, reaching the highest levels since early 2019. The cause is clear. Inflation has climbed to the highest levels in decades, and the Fed has started to tighten monetary policy to bring inflation back down.  After indicating for months that they must fight inflation by reversing the extremely accommodative policy measures …

Fed Tightens

Raleigh Mortgage Group Uncategorized

While investors continued to keep a close eye on the conflict in Ukraine this week, the primary influence on mortgage markets was growing concern about rising inflation and its effect on future Fed policy. At its meeting on Wednesday, the Fed indicated that it plans to tighten monetary policy more than expected, and mortgage rates ended the week higher. Fed …

Rising Inflation

Raleigh Mortgage Group Uncategorized

Headlines about the conflict in Ukraine continued to cause volatility in mortgage markets this week, but their net impact was roughly neutral. Instead, the primary influence was growing concern about rising inflation, and mortgage rates ended the week higher. The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at price changes for a broad range of …