Pandemic, Fed and Jobs

Raleigh Mortgage Group Uncategorized

A wide range of major economic news caused an enormous amount of daily volatility last week. However, the various influences were roughly offsetting, and mortgage rates ended with little change. Investors have been trying all week to evaluate how large an impact the spread of the new omicron Covid variant will have on global economic growth. Since slower growth reduces …

Retail Sales Surge

Raleigh Mortgage Group Uncategorized

Rising Covid case counts, particularly in Europe, outweighed stronger than expected consumer spending data this past week, and mortgage rates ended a little lower. To help reduce the spread of Covid, Austria announced on Friday that it will impose a national lockdown again beginning on Monday. This raised investor concerns about slower global economic growth, which would reduce future inflationary …

Inflation Jumps

Raleigh Mortgage Group Uncategorized

Much stronger than expected key inflation data was negative for mortgage markets last week, and rates ended slightly higher. 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 and provides a clearer picture of the longer-term …

Inflation Remains High

Raleigh Mortgage Group Uncategorized

As anticipated, the GDP report released this week reflected the negative impact of the pandemic and supply chain issues on growth, and the latest inflation data matched expectations. Mortgage rates ended the week slightly lower, ahead of the upcoming Fed meeting. The core PCE price index is the inflation indicator favored by the Fed. In September, core PCE was 3.6% …

Home Sales Rise

Raleigh Mortgage Group Uncategorized

Although there was little major economic news released over the past week, mortgage rates continued to rise, as investors worry about higher inflation. Sales of existing homes in September rose 7% from August but still were a little lower than a year ago. Inventory levels were down 13% from a year ago, at just a 2.4-month supply nationally, well below …

Strong Consumer Spending

Raleigh Mortgage Group Uncategorized

Over the past week, inflation data that overall was a bit weaker than expected offset stronger than expected consumer spending, and mortgage rates ended slightly lower. Economists had anticipated that the end of supplemental unemployment benefits for many people and a lack of inventory for some products would lead to a drop in consumer spending in September. Instead, retail sales …

Job Gains Fall Short

Raleigh Mortgage Group Uncategorized

While the major economic data released this week was roughly in line with expectations overall, investors shifted to riskier assets, which helped stocks and hurt bonds. As a result, mortgage rates ended the week higher. The closely watched Employment report released on Friday suggested that the spread of Covid continued to hinder job creation. Against a consensus forecast of 500,000, …

Steady Inflation

Raleigh Mortgage Group Uncategorized

There were no significant surprises in the economic data released last week. Inflation held steady from last month and the manufacturing sector remained strong. Mortgage rates ended the week nearly unchanged. The core PCE price index is the inflation indicator favored by the Fed. In August, core PCE was 3.6% higher than a year ago, matching the consensus forecast. This …

Mortgage Rates Rise

Raleigh Mortgage Group Uncategorized

Last week, investors were focused on Wednesday’s Fed meeting. Though there were no significant surprises, the reaction was negative for bonds, and mortgage rates ended the week higher. To help ease the impact of the pandemic, the Fed put in place extraordinary monetary policy measures including bond purchases and rate cuts last year. With the solid recovery of the economy, …

Job Openings Surge

Raleigh Mortgage Group Uncategorized

This past week, the European Central Bank announced the expected policy change in its bond purchase program. The other major economic news contained no surprises, and mortgage rates ended the week with little change. As expected, the European Central Bank (ECB) announced at Thursday’s meeting that it will reduce its bond purchases, but it did not specify by exactly how …