Trend Continues

By
Mortgage and Lending with Peoples Home Loans NMLS 13530

 

With investors focused on the outlook for global economic growth, it was another week of declines in both stocks and mortgage rates. Fed Chair Yellen's comments contained no major surprises and were roughly neutral. Current mortgage rates are not far from the record lows seen in 2012.

 

The trend continued this week as investors displayed a preference for safer assets. Concerns about the pace of global economic growth caused investors to reduce the level of risk in their portfolios. Stock markets around the world posted another week of large losses. For mortgage rates, however, slower economic growth is good news, as it reduces the outlook for future inflation. Combined with the decline in oil prices, inflationary pressures appear to be contained for a while, and mortgage rates have benefited greatly this year. 

 

While the global economic picture remains clouded, incoming data suggests that economic conditions in the U.S. remain relatively healthy. 

 

 

Friday's report on retail sales revealed steady growth over the last several months, consistent with good job gains and lower gas prices. Excluding the volatile auto component, retail sales in January posted better than expected improvement. Upward revisions to the December results added to the strength of the report. Mortgage rates moved a little higher after the release of the data.

 

 

 

Looking ahead, the NAHB Housing confidence index will be released on Tuesday. TheFed Minutes from the December 16 meeting will come out on Thursday. These detailed Minutes provide additional insight into the debate between Fed officials. Housing Starts, PPI, and Industrial Production also will come out on Wednesday. The Consumer Price Index (CPI) will be released on Friday. CPI is the most closely watched monthly inflation report, and it looks at the price change for finished goods which are sold to consumers.

 

 

 

Posted by

Michael Dutra

Regional Sales Manager

Peoples Home Loans

Phone: (508) 372-9176

Cell: (401) 486-6894

Email: Mike@TeamDutra.com

Website: www.TeamDutra.com 

 

Lending in ALL 50 States

 

NMLS 13530

Comments (1)

DEANNA C. SMITH CERTIFIED MOBILE NOTARY
Certified Mobile Notary Signing Agent - Smith Mountain Lake, VA
Highest Ranked Certified Mobile Notary in Virginia

Time for people to   GET OFF THE FENCE   Michael Dutra 

Feb 22, 2016 05:16 PM