Inflation Picks Up

Raleigh Mortgage Group Uncategorized

Despite a stronger than expected report on current inflation, investors appeared to become less concerned about future inflation this week. Combined with a European Central Bank meeting that was viewed as favorable, mortgage rates ended the week a little lower. The Consumer Price Index (CPI) is a widely followed monthly inflation report that looks at the price change for goods …

Inflation Climbs

Raleigh Mortgage Group Uncategorized

The two major reports released this week on inflation and durable goods were roughly in line with expectations, and mortgage rates ended last week nearly unchanged. The reduced economic activity resulting from the pandemic caused a large decline in inflation last year, which was one of the factors responsible for record low mortgage rates. With the distribution of the vaccine …

Home Sales Fall

Raleigh Mortgage Group Uncategorized

With little major economic news, last week was a quiet week for mortgage markets, and rates ended nearly unchanged. A lack of inventory remained a major obstacle for the housing sector, as April existing home sales unexpectedly fell 3% from March. Despite the modest decline, sales still were 34% higher than a year ago (which is somewhat misleading due to …

Inflation Spikes

Raleigh Mortgage Group Uncategorized

Investors were mostly focused on inflation this week, and the data was much stronger than anticipated. The Retail Sales report was roughly in line with expectations overall and caused little reaction. As a result, mortgage rates ended higher. Since inflation reduces the value of future cash flows, higher levels are negative for mortgage-backed securities (MBS) and thus for mortgage rates. …

Home Sales Slow

Raleigh Mortgage Group Uncategorized

It was a quiet week for mortgage markets. Mixed economic data and a proposed tax increase caused little reaction, and mortgage rates ended the week nearly unchanged. Existing home sales, which make up about 90% of the market, bounced back from the shutdown of much of the economy last spring far more quickly than expected and have remained at very …

Retail Sales Surge

Raleigh Mortgage Group Uncategorized

With the increased delivery of the vaccine and the distribution of stimulus checks, investors have anticipated that economic growth will be enormous this year. This has significantly raised the outlook for future inflation, which has caused a sharp increase in mortgage rates from the record low levels seen last year. The growth and inflation data released this week was stronger …

Service Sector Shines

Raleigh Mortgage Group Uncategorized

The growth and inflation data released this week was stronger than expected nearly across the board. Despite this, however, mortgage rates ended the week a little lower.  The most significant economic report this week exceeded expectations by a considerable amount. The ISM national services index jumped from 55 to 64, far above the consensus forecast of 59, and the highest …

Impressive Job Gains

Raleigh Mortgage Group Uncategorized

The important labor market and manufacturing data released this week was much stronger than expected. Despite this, however, mortgage rates ended the week with little change.   Friday’s highly anticipated monthly Employment report revealed very impressive results. In March, the economy gained 916,000 jobs, far above the consensus forecast of 625,000, and revisions added 156,000 jobs to the results for prior months. Particular strength was seen in the hospitality and construction sectors.  The unemployment …

Home Sales Stumble

Raleigh Mortgage Group Uncategorized

After reaching the highest levels in months last week, mortgage rates ended this week a little lower. Weaker than expected housing reports and tame inflation data helped support the decline in rates.   Home sales bounced back from the shutdown of much of the economy last spring far more quickly than expected and have remained at very high levels for many …

Volatile Week

Raleigh Mortgage Group Uncategorized

It was another rough week for mortgage markets, as investors attempt to determine the appropriate level of yields for the current economic environment. It looked promising Wednesday afternoon when the Fed meeting revealed no policy changes and rates dropped from their peak. However, the climb resumed the next day, and mortgage rates ended the week higher.  As expected, the Fed …