Inflation Moderates

Raleigh Mortgage Group Uncategorized

Two opposing forces influenced mortgage markets this week. Lower than expected inflation data was very welcome news to investors, but an aggressive tone from the Fed was not. The net effect was that mortgage rates ended the week nearly unchanged. The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at price changes for a broad range …

Strong Job Gains

Raleigh Mortgage Group Uncategorized

Stronger than expected economic data was unfavorable for mortgage markets last week. In particular, the key labor market report far exceeded the forecasts, and mortgage rates ended the week higher. The closely watched Employment report released on Friday displayed unexpected strength nearly across the board. Against a consensus forecast of 250,000, the economy gained 528,000 jobs in July. The best …

GDP Declines

Raleigh Mortgage Group Uncategorized

Economic growth during the second quarter was weaker than expected, which was favorable for mortgage markets this week. The Fed meeting revealed no surprises and caused little reaction. As a result, mortgage rates ended the week a bit lower. As expected, the Fed raised the federal funds rate by 75 basis points on Wednesday, matching the largest increase since 1994 …

ECB Meeting Lowers Rates

Raleigh Mortgage Group Uncategorized

During a light week for economic news, the biggest event was the European Central Bank (ECB) meeting. The ECB surprised some investors with its aggressive move to tighten monetary policy to fight inflation, which was favorable for mortgage markets. As a result, mortgage rates ended the week lower. On Thursday, the European Central Bank (ECB) raised rates by 50 basis …

Solid Job Gains

Raleigh Mortgage Group Uncategorized

This week, the highly anticipated Employment report released on Friday was a little stronger than expected, while the other major economic data was mixed. As a result, mortgage rates ended the week higher. Against a consensus forecast of just 250,000, the economy added 372,000 jobs in June, which was right in line with the gains seen over the last few …

Home Sales Mixed

Raleigh Mortgage Group Uncategorized

With global central banks aggressively tightening monetary policy to fight inflation, this week investors reduced their outlook for economic growth. As a result, mortgage rates declined from the highest levels since 2008 seen last week.  In May, sales of existing homes, which make up about 90% of the market, declined for the fourth straight month to the lowest level since …

Fed Tightens

Raleigh Mortgage Group Uncategorized

The US Fed tightened monetary policy by a massive amount this week at its meeting on Wednesday, and other global central banks also have been taking aggressive steps to fight inflation. As a result, mortgage rates reached their highest levels since 2008.  As expected, the Fed raised the federal funds rate by 75 basis points, the largest increase since 1994, …

High Inflation

Raleigh Mortgage Group Uncategorized

Inflation remained the focus for investors this week, and the latest readings came in stronger than expected, at or near the highest levels in decades. The European Central Bank also revealed a more aggressive stance to fight inflation. As a result, mortgage rates ended the week higher.  The Consumer Price Index (CPI) is a closely watched inflation indicator that looks …

Steady Job Gains

Raleigh Mortgage Group Uncategorized

It was a relatively quiet week for mortgage markets. The most highly anticipated economic news, the key labor market report, was roughly in line with expectations overall. Mortgage rates ended the week a little higher.  The closely watched Employment report released on Friday contained no major surprises. Against a consensus forecast of 325,000, the economy gained 390,000 jobs in May. …

Inflation Matches Expectations

Raleigh Mortgage Group Uncategorized

Increasing concern that the pace of global economic growth may be slowing was favorable for mortgage markets this week. The major economic reports and Fed minutes caused little reaction. As a result, mortgage rates ended the week a little lower.  Several factors have been causing investors to gradually reduce their outlook for global economic growth, particularly in Europe. These include …