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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 …

Labor Market Excels

Friday, Jan 4, 2019 By HomeLoan123.

Strong labor market data mostly offset weak manufacturing data and increased concern about the pace of global economic growth this week, and mortgage rates ended a little lower.

Stronger than expected results for Friday’s key monthly Employment report were negative for mortgage rates, since they raised the outlook for future inflation. Against a consensus forecast of 180,000, the economy added a whopping 312,000 jobs in December. In addition, upward revisions added …

Focus on Global Events

Friday, Nov 16, 2018 By HomeLoan123.

The primary influences on mortgage rates this week came from outside the U.S. Concerns about the pace of global economic growth and uncertainty about British plans for exiting the European Union were favorable for rates, while the U.S. economic data had little impact. The net effect was that mortgage rates ended the week lower.

Investors reduced their outlook for global economic growth this week, partly due to the news that economic output contracted in Germany and Japan …

Strong Labor Market Data

Friday, Nov 2, 2018 By HomeLoan123.

Stronger than expected labor market data was the primary influence on mortgage rates this week. The stock market remained volatile and posted gains for the week. Mortgage rates ended a little higher.

Friday’s heavily watched Employment report showed that well above average improvement in the labor market continued for yet another month. Against a consensus forecast of 190,000, the economy added 250,000 jobs in October. The job growth was spread across many sectors of …