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GDP Beats Forecasts

Friday, Mar 1, 2019 By HomeLoan123.

Stronger than expected economic growth data was unfavorable for mortgage rates this week. Progress in the trade negotiations also was negative, and mortgage rates ended the week higher.

The report on gross domestic product (GDP), the broadest measure of economic growth, for the fourth quarter of 2018 was delayed quite a bit by the government shutdown, but it was worth the wait. GDP increased 2.6% during the fourth quarter, down from 3.4% in the third quarter, yet well …

Retail Sales Dive

Friday, Feb 15, 2019 By HomeLoan123.

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 shutdown, but it finally was released on Thursday, and it was very disappointing. Since weaker growth reduces …

Quiet Week

Friday, Feb 8, 2019 By HomeLoan123.

Sandwiched between recent major economic events and several more later in the month, there was little significant economic news this week, and mortgage rates ended slightly lower.

Investors were mostly focused on bigger picture economic conditions this week, and their primary questions concerned the outlook for global growth. While the forecast for U.S. gross domestic product (GDP) growth in 2019 has held relatively steady around 2.5%, many other regions have been …

Fed and Labor Market

Friday, Feb 1, 2019 By HomeLoan123.

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) than expected. In particular, the Fed now will be “patient” in deciding if additional rate …

Shutdown Effects

Friday, Jan 18, 2019 By HomeLoan123.

Due to the government shutdown, there was little major economic data released this week, and mortgage rates ended slightly higher.

This week was more notable for the economic reports which did not get released rather than the ones that did. Tuesday’s Retail Sales report became the most significant data so far to be delayed by the government shutdown which began on December 22. Since consumer spending accounts for about 70% of all economic activity in the U.S., the …

Inflation Steady

Friday, Jan 11, 2019 By HomeLoan123.

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 components, to provide a clearer indication of the underlying trend.

The latest reading showed that core inflation held …