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 …

Job Gains Fall Short

Raleigh Mortgage Group Uncategorized

This past week, the key labor market data revealed mixed results, and it was viewed as roughly neutral overall. The other major economic news contained no surprises, and mortgage rates ended the week with little change. The closely watched Employment report released on Friday suggested that the spread of Covid has dampened job creation, particularly in sectors such as leisure …

Inflation Moderates

Raleigh Mortgage Group Uncategorized

During a light week for economic data, investors were mostly focused on the CPI inflation report. The results were roughly in line with the expected levels, however, and mortgage rates ended the week with little change. The core Consumer Price Index (CPI) is a closely watched inflation indicator which excludes the volatile food and energy components. In July, this index …

GDP Falls Short

Raleigh Mortgage Group Uncategorized

There was no shortage of major economic news last week, but none caused much reaction. The Fed meeting produced no significant surprises, and the GDP report was roughly neutral overall. Mortgage rates ended the week a little lower. The headline number for second quarter gross domestic product (GDP), the broadest measure of economic activity, showed annualized growth of just 6.5%, …

Home Sales Climb

Raleigh Mortgage Group Uncategorized

As expected, there was not much significant economic news last week. The data from the housing sector contained no major surprises, and mortgage rates ended nearly unchanged. After four straight months of declines, sales of existing homes in June rose modestly from May and were 23% higher than a year ago. Inventory levels were down 19% from a year ago, …

Service Sector Grows

Raleigh Mortgage Group Uncategorized

The major economic news was favorable for mortgage markets this week. Investors grew more concerned that the spread of Covid variants could slow global growth, portfolio rebalancing at the start of the third quarter increased the demand for bonds, and the economic data was a bit weaker than expected. As a result, mortgage rates ended the week lower. The most …

Inflation Climbs

Raleigh Mortgage Group Uncategorized

There was little news this week to change the outlook for economic growth or future Fed policy. As a result, mortgage rates ended nearly unchanged. The core PCE price index is the inflation indicator favored by the Fed, and their stated target level is 2.0%. In May, core PCE was 3.4% higher than a year ago, slightly below the consensus …

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 …