Weekly Economic Update – 3.20.17

For a couple of weeks prior to Wednesday’s Fed meeting, comments from Fed officials and stronger than expected economic data caused mortgage rates to rise.  However, the outcome of the Fed meeting was viewed as relatively favorable for mortgage rates, and the trend slightly reversed with last week rates ending slightly back down. As widely expected, the Fed raised the …

Weekly Economic Update – 3.13.17

Last week we saw two factors that were BAD for mortgage rates – stronger than expected U.S. labor market data and increased expectations for tighter monetary policy from the central banks in the U.S. and Europe.  As a result, mortgage rates ended the week higher. On Wednesday, ADP, a private payroll firm, estimated that there were an enormous 298,000 private …

Weekly Economic Update – 3.06.17

A shift in expectations toward a faster pace of tightening by the Fed was negative for mortgage rates last week.  Stronger than expected economic data was also unfavorable and as a result, mortgage rates ended the week slightly higher. This week, speeches by several Fed officials were more “hawkish” than expected.  This caused investors to expect a faster pace of …

Weekly Economic Update – 2.27.17

Last week was another volatile ride for mortgage markets.  Uncertainty about the outcome of the elections in Europe had a positive influence on U.S. mortgage rates and domestic economic data had little effect.  As a result, mortgage rates ended the week just slightly lower. One source of volatility is uncertainty about the outcome of upcoming elections in several European countries. …

Weekly Economic Update – 2.20.17

Based on the economic news over the past week, it would not have been surprising to see a large increase in mortgage rates.  With stronger than expected economic data nearly across the board, “hawkish” comments from the Fed, and a stock market rally, the first half of the week indeed was rough on rates.  However, once the dust settled, mortgage …

Weekly Economic Update – 2.13.17

Last Friday’s Employment report left investors feeling good about buying bonds, and mortgage rates improved over the first half of the week.  However, an announcement from President Trump on Thursday was negative for bonds, and a partial reversal took place.  After a couple of weeks with relatively little net change, mortgage rates ended the week a slightly lower. The much …

Weekly Economic Update – 2.6.17

Over the past week, two major economic reports contained mixed news and had offsetting effects on mortgage rates.  Investors viewed Wednesday’s Fed meeting as favorable for bonds and mortgage rates ended the week slightly lower. The January ISM national manufacturing index was released on Wednesday.  The index rose to 56, which was the highest level since November 2014.  Readings above …

Weekly Economic Updates – 1.30.17

Last week was volatile for mortgage rates.  Influences included central bankers, comments from the Trump administration, and economic data.  The net effect of these factors was very small, and mortgage rates ended the week with little change. On Tuesday, a top official from the European Central Bank (ECB) signaled that the ECB should soon begin to wind down its monthly …

Weekly Economic Update – 1.23.17

Comments from Fed officials and stronger than expected economic data were negative for mortgage rates last week.  Renewed concerns about the United Kingdom’s exit from the European Union offset a little of the increase, but mortgage rates ended the week higher. Well, “Brexit” is back in the news.  On Tuesday, British Prime Minister Theresa May spoke about the UK’s objectives …

Weekly Economic Update – 1.17.17

Mortgage rates showed some small improvement through the beginning of last week, BUT Friday’s inflation data caused a reversal, and mortgage rates ended the week slightly higher than the prior week. Early in the week, investors shifted some assets from stocks to bonds, including mortgage-backed securities (MBS).  Comments from President-elect Trump were one reason that investors sold certain stocks.  In …