Fed Helps Bonds

Raleigh Mortgage Group Uncategorized

While it was a volatile week for stocks, the mortgage market remained relatively calm. Wednesday’s Fed meeting contained favorable news for bonds, and mortgage rates ended the week lower. Since the middle of March, the Fed has bought over $2 trillion in Treasuries and mortgage backed securities (MBS) to help support the economy and to maintain market stability, but it …

Stunning Job Gains

Raleigh Mortgage Group Uncategorized

There’s no doubt that the biggest economic news this week was Friday’s unbelievably strong labor market report. This was positive news for the stock market, but it caused mortgage rates to end the week a little higher. For perspective, typical monthly readings were for job gains of around 200,000 in 2019. In April, the economy lost a staggering 20 million …

Inflation Drops

Raleigh Mortgage Group Uncategorized

While the stock market posted nice gains this week, mortgage markets were relatively quiet. Daily volatility remained low, and the change in rates for the week again was small. One consequence of the reduced economic activity resulting from the pandemic has been a decline in inflation, which has helped keep mortgage rates low. In April, the core PCE price index, …

Housing Activity

Raleigh Mortgage Group Uncategorized

The housing data released this week confirmed that the anticipated massive decline in activity in April took place. However, there also were several encouraging signs that a substantial rebound already has begun. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. In April, existing home sales fell 18% from March to …

Retail Sales Plunge

Raleigh Mortgage Group Uncategorized

The closely watched Retail Sales report released this week showed that consumer spending dropped even more than anticipated in April. Fed Chair Powell repeated the message that the Fed will use all its tools to support the economy. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. With much of the …

Unemployment Rises

Raleigh Mortgage Group Uncategorized

The closely watched monthly Employment report released this week contained the anticipated levels of historic job losses. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. Friday’s Employment report revealed a massive loss of 20.5 million jobs in April, which was close to the consensus forecast. The unemployment rate jumped from …

Feds Will Provide Maximum Support

Raleigh Mortgage Group Uncategorized

This week, the unemployment figures continued to rise and the GDP data reflected the slowdown in economic activity due to the coronavirus. US and European central bank meetings produced no significant surprises and had little impact. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. Since major global central banks have …

Home Sales Decline

Raleigh Mortgage Group Uncategorized

This week, the unemployment figures continued to rise and the home sales data reflected the slowdown in economic activity due to the coronavirus. Congress passed a bill to provide another $484 billion in aid for small businesses, hospitals, and virus testing. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. Filings …

Consumer Spending Slows

Raleigh Mortgage Group Uncategorized

The coronavirus continued to be the focus for investors. This week’s data on consumer spending and housing starts reflected the anticipated decline in economic activity. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small. Thursday night, President Trump unveiled broad guidelines for a path to relaxing the restrictions which have been …

Fed Expands Lending Programs

Raleigh Mortgage Group Uncategorized

The coronavirus continued to be the focus for investors this week. The biggest economic news was Thursday’s release of the details of the Fed’s plans to provide additional assistance to businesses and local governments. The stock market posted some welcome gains, with the Dow index adding over 2,500 points. For mortgage markets, daily volatility was significantly lower, and the net …