Retail Sales Dive

Raleigh Mortgage Group Uncategorized

Weaker than expected retail sales data was offset by progress on a government funding agreement this week, and mortgage rates ended nearly unchanged. Consumer spending accounts for about 70% of all economic activity in the U.S., so the retail sales data is a key indicator of growth. The report for the important holiday shopping period was delayed by the government …

Fed and Labor Market

Raleigh Mortgage Group Uncategorized

Major economic events made this a volatile week. Wednesday’s Fed meeting was strongly positive for mortgage rates, while Friday’s Employment report was modestly negative. The net result was a decline in rates for the week. As expected, the Fed held the federal funds rate steady, but the tone of its statement was more dovish (in favor of looser monetary policy) …

Home Sales Slide

Raleigh Mortgage Group Uncategorized

With some major economic data unavailable due to the government shutdown, and ahead of several major economic events in the near future, there was little market moving news this week, and mortgage rates ended nearly unchanged. One economic report which was released this week revealed that housing market activity tapered off near the end of 2018. Sales of existing homes …

Inflation Steady

Raleigh Mortgage Group Uncategorized

There were no significant surprises in the major economic data or in the news from the Fed this week, and mortgage rates ended with little change. The Consumer Price Index (CPI) is a widely followed monthly inflation report that measures the price change for goods and services. Most investors look at core CPI, which excludes the volatile food and energy …

Labor Market Excels

Raleigh Mortgage Group Uncategorized

Strong labor market data mostly offset weak manufacturing data and increased concern about the pace of global economic growth last week, and mortgage rates ended a little lower. Stronger than expected results for Friday’s key monthly Employment report were negative for mortgage rates, since they raised the outlook for future inflation. Against a consensus forecast of 180,000, the economy added a …

ECB Ends Bond Purchases

Raleigh Mortgage Group Uncategorized

While a lot of volatility again was seen in the stock market, it was a relatively quiet week for mortgage rates. The major U.S. economic data came in on target, and there were no surprises from the European Central Bank. As a result, rates ended with little change. Consumer spending accounts for about 70% of all economic activity in the …

Focus on Fed

Raleigh Mortgage Group Uncategorized

Wednesday’s speech by Fed Chair Powell was favorable for mortgage rates, while the recent economic data caused little reaction, and rates ended the week lower. Similar to recent comments from other Fed officials, Fed Chair Jerome Powell’s speech hinted at a slower pace of monetary policy tightening, which was good news for both stocks and bonds. Of note, Powell said …

Focus on Global Events

Raleigh Mortgage Group Uncategorized

The primary influences on mortgage rates this week came from outside the U.S. Concerns about the pace of global economic growth and uncertainty about British plans for exiting the European Union were favorable for rates, while the U.S. economic data had little impact. The net effect was that mortgage rates ended the week lower. Investors reduced their outlook for global …

Strong Labor Market Data

Raleigh Mortgage Group Uncategorized

Stronger than expected labor market data was the primary influence on mortgage rates this past week. The stock market remained volatile and posted gains for the week. Mortgage rates ended a little higher. Friday’s heavily watched Employment report showed that well above average improvement in the labor market continued for yet another month. Against a consensus forecast of 190,000, the …

Strong GDP Growth

Raleigh Mortgage Group Uncategorized

Weakness in the stock market was good for mortgage rates this week, while the major economic data was mixed and had little impact. As a result, mortgage rates ended the week lower. As was the case this week, stock prices and bond prices often move in opposite directions. The simple reason is that most economic events are influential because they …