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 …

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, …