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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 …

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 …

Strong GDP Growth

Friday, Oct 26, 2018 By HomeLoan123.

Weakness in the stock market was good for mortgage rates this week, while the major economic data was mixed and had little impact. As a result, mortgage rates ended the week lower.

As was the case this week, stock prices and bond prices often move in opposite directions. The simple reason is that most economic events are influential because they change the outlook for future growth and inflation. Since a stronger economy is positive for stocks and negative for bonds (and …