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 …

Home Sales Fall

Raleigh Mortgage Group Uncategorized

With little major economic news, last week was a quiet week for mortgage markets, and rates ended nearly unchanged. A lack of inventory remained a major obstacle for the housing sector, as April existing home sales unexpectedly fell 3% from March. Despite the modest decline, sales still were 34% higher than a year ago (which is somewhat misleading due to …

Inflation Spikes

Raleigh Mortgage Group Uncategorized

Investors were mostly focused on inflation this week, and the data was much stronger than anticipated. The Retail Sales report was roughly in line with expectations overall and caused little reaction. As a result, mortgage rates ended higher. Since inflation reduces the value of future cash flows, higher levels are negative for mortgage-backed securities (MBS) and thus for mortgage rates. …

Home Sales Slow

Raleigh Mortgage Group Uncategorized

It was a quiet week for mortgage markets. Mixed economic data and a proposed tax increase caused little reaction, and mortgage rates ended the week nearly unchanged. Existing home sales, which make up about 90% of the market, bounced back from the shutdown of much of the economy last spring far more quickly than expected and have remained at very …

Retail Sales Surge

Raleigh Mortgage Group Uncategorized

With the increased delivery of the vaccine and the distribution of stimulus checks, investors have anticipated that economic growth will be enormous this year. This has significantly raised the outlook for future inflation, which has caused a sharp increase in mortgage rates from the record low levels seen last year. The growth and inflation data released this week was stronger …

Service Sector Shines

Raleigh Mortgage Group Uncategorized

The growth and inflation data released this week was stronger than expected nearly across the board. Despite this, however, mortgage rates ended the week a little lower.  The most significant economic report this week exceeded expectations by a considerable amount. The ISM national services index jumped from 55 to 64, far above the consensus forecast of 59, and the highest …