mortgage rates: What's Ahead for Mortgage Rates This Week - February 10th, 2025 - 02/11/25 07:08 AM
Last week's reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports. 
Currently, considerable movement within the government administration is contributing to widespread uncertainty and instability across various markets. Additionally, the recent outbreak of Avian Flu has driven poultry prices sharply higher, further adding to consumer unease. This uncertainty is reflected in the Consumer Sentiment reports, which have seen their most significant decline since July, as inflation concerns intensify.
Meanwhile, Consumer Credit data came in worse than expected, while job reports exceeded expectations. … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - February 3rd, 2025 - 02/03/25 06:12 AM
The previous week’s reins were held by the Federal Reserve’s Rate Decision and also the preferred inflation indicator, the PCE Index. With the PCE Index coming in well above the Federal Reserve’s 2% target, it suggests that rate cuts may be postponed much longer this year than initially anticipated.
Looking ahead, the upcoming week features the CPI and PPI inflation data reports, making for a busy schedule. However, this week’s reports are relatively limited in terms of significant market impact. The most notable releases include Unemployment Data and U.S. Wages, both of which will complement the inflation data to provide a broader … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - January 27th, 2025 - 01/27/25 06:34 AM
With the holiday of the previous week in addition to an extremely light release week, only the Consumer Sentiment report is weighing in on the lending markets. With both the inflation reports showing inflation cooling off, there is still some optimism about where the Federal Reserve will take things. This optimism is only cooled by the uncertainty the new presidency will bring. Many markets have responded in kind, with lending partners showing a trend of increasing rates and other markets preparing for uncertainty. Within the next few months, we will see how the new administration intends to handle monetary policy. This … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - January 21st, 2025 - 01/21/25 06:28 AM
Recent economic data brought significant relief, with both the CPI and PPI indicating that inflation was running cooler than expected. In the context of the current administration, this was welcome news, helping to ease concerns about potential monetary policy changes. The Federal Reserve has very frequently signaled they will follow the data and this time it was a positive result towards reducing rates further this year. The change in administration, however, still remains unknown and there is a lot of unrest across lending partners and markets alike. This was also followed by a better than expected Retail Sales report which has … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - January 13th, 2025 - 01/13/25 01:08 PM
In the first FOMC Minutes of the year, the Federal Reserve signaled strongly that while officials remain vigilant for inflation exceeding their expectations, they have no plans to raise interest rates. Much of the apprehension among speculators is the monetary policy which could keep inflation higher than expected for some time. Meanwhile, unemployment reports indicate that the previous year remained stable, consistently staying below the annual high—a positive sign of a stronger job market.  However, this has been somewhat dampened by the recent reports of the Trade Deficit. Compared to the previous year, the trade gap has nearly doubled, potentially clashing … (0 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - December 30th, 2024 - 12/30/24 09:21 AM
With Christmas concluding the prior week, there were few reports other than Consumer Confidence, which had come in slightly below expectations. This should prove to have little impact, especially in the following week. With the New Year on the horizon, there are no reports other than the Chicago Manufacturing output report for the entire week. Happy Holidays!
Consumer Confidence
A post-election pop in consumer confidence fizzled at the end of the year, owing to worries about the U.S. stock market and a potentially higher cost of living as a result of new tariffs. The index of consumer confidence dropped 8.1 points to a … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - December 23rd, 2024 - 12/23/24 06:39 AM
The rate cut by the Federal Reserve was hotly anticipated, and as predicted, they proceeded with the reduction, signaling the possibility of further cuts depending on inflation data. Although markets were generally receptive to the positive news, other government-related issues had dampened the high spirits temporarily. Outside of the rate decision, the PCE Index (the Federal Reserve’s preferred inflation indicator) has performed positively by beating the forecast. In addition, the Consumer Sentiment was exactly where it should be as expected.
PCE Index
The PCE index increased a scant 0.1% last month, the government said Friday. That’s the smallest rise in three months and … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - December 16th, 2024 - 12/16/24 06:54 AM
Last week featured a light release schedule, with the key highlights being the CPI and PPI reports. The CPI has proven to be exactly within expectations, signaling the Federal Reserve should be on track for another planned rate cut. However, this was offset by higher-than-expected PPI inflation. Despite these mixed signals, both indicators show stable trends, and overall inflation appears to be moving toward the Federal Reserve's target. The Federal Reserve remains committed to reducing inflation until their goal is achieved.
Consumer Price Index
Consumer prices rose in November at the fastest pace in seven months. Still, the latest inflation report is probably … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - December 2nd, 2024 - 12/03/24 05:03 AM
Leading off with the FOMC Minutes, the Federal Reserve has stated once again they will maintain a “gradual” approach to cutting interest rates, which has aligned with their goals of meeting their target 2% inflation goal. The PCE Index release numbers, the Federal Reserve’s preferred inflation indicator, have shown everything is within expectations. So while the rate cuts may be a gradual process, there is much optimism that they are coming.  Following those reports were the Personal Income Spending, GDP Estimates, and Consumer Confidence pending the holidays. Both the Persona Income and Spending have shown very strong results ahead of the … (5 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - November 25th, 2024 - 11/25/24 06:44 AM
Following the election results, the University of Michigan's Consumer Sentiment Report painted a less-than-stellar picture, reflecting stagnation in sentiment. The prior week was relatively light, aside from the Consumer Sentiment data. However, the S&P PMI Industrial Numbers provided a brighter outlook, indicating some acceleration in manufacturing activity as the holiday season approaches. Looking ahead, the coming week is expected to deliver more significant data on inflation, including the Federal Reserve's preferred measure, the PCI Index.
PMI Services Index
The economy sped up in November and kept the U.S. on track for another strong quarter of growth, fueled by optimism about falling interest rates … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - November 18th, 2024 - 11/18/24 07:57 AM
With the release of the latest CPI and PPI data, inflation has increased month-to-month for the first time since March, marking the first rise in over seven months. The Federal Reserve has reiterated its goal of reducing inflation to a 2% target within a year. While this development doesn't necessarily indicate an imminent interest rate hike, it suggests that current rates may remain unchanged for an extended period. Earlier optimism about a potential rate cut by the end of the year has significantly diminished in light of recent inflation figures and economic data. However, Retail Sales data presents a more positive … (0 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - November 12th, 2024 - 11/12/24 10:39 AM
Big inflation reports for the coming week with both CPI and PPI on the schedule. We should expect the data to remain within expectations given the latest reports from both the PCE Index and GDP estimates. The Federal Reserve has still remained hawkish and the last rate decision the expectation is the current rates should maintain. However with the inflation being very close to the Federal Reserve’s target inflation rate and the expected “soft landing” on the horizon. The outlook is optimistic for another round of rate cuts in future.
Federal Reserve Rate Decision
In the face of slowing inflation and strong consumer … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - November 4th, 2024 - 11/04/24 06:19 AM
T
his week, the Federal Reserve’s preferred inflation data was released, and the results met expectations. This, along with recent GDP estimates, employment reports, and personal income/spending figures, paints a stable economic picture. It suggests that we may be on track for the Federal Reserve’s next round of rate cuts. The Federal Reserve has consistently stated its 2% inflation target and current figures show inflation at 2.1%. This indicates that a 'soft landing' for the economy could be within reach.
PCI Index
Prices in the U.S. rose modestly in September, but not enough to suggest inflation is rekindling or to prevent the Federal Reserve … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - October 28th, 2024 - 10/28/24 07:19 AM
This week saw relatively light activity, primarily focused on discussions with the Federal Reserve Board. The only truly notable report released was the Consumer Sentiment Report, which happily reported that sentiment had risen for the month of October. Meanwhile, the Federal Reserve’s latest Beige Book survey noted a slight decline in manufacturing activity.
Consumer Sentiment (Final)
Confidence among Republicans in a potential Donald Trump victory helped drive consumer sentiment to a six-month high less than two weeks before the U.S. presidential election. The University of Michigan reported on Friday that the initial October reading of consumer sentiment rose to 70.5, up slightly from … (0 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - October 21st, 2024 - 10/21/24 06:18 AM
The release of last week's inflation data has left this week with very few significant data updates. The most important information will come from various Federal Reserve members speaking on different topics. They have consistently emphasized that they will closely monitor the data to decide whether further rate cuts are needed in their upcoming rate decision meeting. Much of the market is optimistic that rate cuts will continue. Additionally, several smaller retail sales data releases are expected soon, which will provide insight into the current strength of the economy.
Retail Sales
Retail sales increased 0.4% in September, with strength in a broad range … (2 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - October 14th, 2024 - 10/14/24 07:08 AM
The CPI and PPI reports delivered their data, showing inflation figures slightly below expectations. However, the positive impact of these reports was tempered by hawkish comments from Federal Reserve members during recent meetings. Despite this, the overall outlook remains optimistic, as further rate cuts are anticipated. Lending partners have also responded positively, significantly lowering their lending rates over the past month.
Consumer Credit
Consumer credit increased by $8.9 billion in August, following a revised $26.6 billion surge in July, the Federal Reserve reported on Monday. This represents a 2.1% annual growth rate in August, a slowdown from the 6.3% rise in the previous … (0 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - October 7th, 2024 - 10/07/24 07:00 AM
Last week was a fairly light week, with the non-farm payroll data being the most significant release. The data showed that payrolls are growing at a faster rate than historical trends suggest, which could indicate that inflation is still above the Federal Reserve's target. In contrast, the upcoming week has a busy schedule, with many important economic releases lined up back to back.
Non-Farm Payrolls
Hourly pay for American workers rose a sharp 0.4% in September - above expectations - to put the increase over the past 12 months at 4.0%. That's up from 3.9% in the prior month. Wages are rising faster … (0 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - September 30th, 2024 - 09/30/24 06:02 AM
With the release of the PCE Index data, we are seeing the trend hold as inflation continues to slow down. This gives the Federal Reserve room to continue its rate cuts in the future. Following the positive news for inflation data, the GDP has also seen a larger-than-expected growth of 3% this quarter. The only data running against the tide is the Consumer Confidence reports, which reported to show that consumers are at their most anxious since 2021. We should expect a greater impact on the lending and broader markets ahead of the elections.
PCE Index
The Federal Reserve’s preferred PCE index inched … (0 comments)

mortgage rates: APR vs. Interest Rates - 09/26/24 11:40 AM
If you're gearing up to dive into the world of real estate, there are a few key terms you'll want to wrap your head around before taking the plunge. Today, we're demystifying APR and interest rate, two crucial concepts that can impact your home-buying journey. Don't worry, I'll break it down in simple terms so you can confidently navigate the process like a pro.
Interest Rate:
Let's start with the basics. The interest rate is the percentage charged by a lender for borrowing money to buy your home. It's essentially the cost of borrowing the principal amount. When you're comparing loan offers, you'll … (1 comments)

mortgage rates: What's Ahead for Mortgage Rates This Week - September 23rd, 2024 - 09/23/24 06:25 AM
The long-awaited week has come and within expectations, the Federal Reserve has decided to reduce interest rates for central banks by 50 basis points. This is the bigger of the two options for a rate cut, with the lesser being 25 basis points. The impact of this cannot be understated as this gives an official nod that the economy is in a good spot and inflation is under control, according to the Federal Reserve’s outlook on the data. The only black mark on the week of releases is the U.S. Leading Economic Indicators showing the economy has been in a slower … (1 comments)

 
Bob Elliot, 30Yrs Experience  (eXp Realty)

Bob Elliot

30Yrs Experience

Minneapolis, MN

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eXp Realty

Address: 15451 Founders Lane, Apple Valley, MN, 55124

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