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Focus on Trade Talks

Friday, May 10, 2019 By HomeLoan123.

The two main influences on mortgage rates this week, a lack of progress in the trade talks and weak inflation data, both were modestly positive for mortgage rates. As a result, rates ended a little lower.

Last week, senior administration officials suggested that a trade deal between the U.S. and China could be close, so investors were caught off guard on Tuesday when President Trump threatened to increase tariffs on Chinese goods. Trump also said that a good deal was a …

Steady Inflation

Friday, Mar 29, 2019 By HomeLoan123.

It was a light week for economic news with few surprises, and mortgage rates ended nearly unchanged.

One big reason that mortgage rates have improved in recent weeks, and that the Fed has shifted toward looser monetary policy, is that inflation has held steady. Despite a very tight labor market by historical standards, wage growth has been moderate, and overall inflation levels in the economy have been constrained.

This trend continued in January, as the core PCE price …

Brexit Uncertainty Remains

Friday, Mar 15, 2019 By HomeLoan123.

Despite a series of Brexit votes in the UK this week, little progress was made, and the uncertainty was modestly favorable for mortgage rates. Weaker than expected inflation data also was positive, and rates ended the week lower.

During an otherwise routine week, investors were drawn to a series of events unfolding in the UK which could have a major impact on the region’s future. In a close vote way back in June 2016, the UK passed a referendum to end its membership …

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 …

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 …

Rates Inch Higher

Friday, Sep 14, 2018 By HomeLoan123.

The primary influence on mortgage rates this week was the Fed minutes, which were considered to be modestly negative. The major economic data released this week was generally weaker than expected, but its impact was minor, and mortgage rates ended a little higher.

The minutes from the September 26 Fed meeting released on Wednesday contained no major surprises, but investors viewed them as slightly more hawkish (meaning in favor of tighter monetary policy) than expected. …