Inflation in the US remained subdued in May which should hold mortgage rates at current low levels for the foreseeable future. The Bureau of Economic Analysis reports that the Core Personal Consumption Expenditure (PCE) was unchanged at 1.6% year-over-year last month. The Core PCE is the Fed's favorite inflation gauge and strips out volatile food and energy. The Fed has set a target range of 2% and the Core PCE has been running below that level for several years. Within the report it showed that personal spending rose in May while April was revised higher. The consumer is alive and well.
The solid US economy over the past few years has had a positive effect for homeowners keeping up with the mortgage payments. The US Office of the Comptroller of the Currency (OCC) reports that 96.2% of those home loans assessed were current and performing at the end of the first quarter of 2019, up from 95.8% a year earlier. In addition, the report went on to reveal that there was a 26% decline in foreclosure action in the first quarter compared to last year. The strong job market is also helping homeowners to keep current on the home loans or refinancing.
Comments (1)Subscribe to CommentsComment