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Mexican Trade Deal

Friday, Jun 14, 2019 By HomeLoan123.

News of a trade deal with Mexico and a wide range of major economic data caused some volatility this week. The net effect of all the news was minor, however, and mortgage rates ended just slightly higher.

Since consumer spending accounts for over two-thirds of all economic activity in the U.S., the retail sales data is a closely watched indicator of growth each month, and the most recent report revealed that spending has been solid this year. In May, retail sales increased …

Mixed Home Sales Data

Friday, May 24, 2019 By HomeLoan123.

Increased trade tensions between the U.S. and China were modestly positive for mortgage rates and negative for stocks this week, while the economic data and the Fed minutes had little impact. As a result, rates declined a bit and ended at the lowest levels in over a year.

The U.S. and China appeared to take a couple of steps backward in the trade negotiations this week, and this increased the likelihood that both countries will impose additional tariffs and other penalties …

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 …

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 …