In recent months, high inflation (and higher mortgage rates) took a large toll on mortgage application volumes.
This past week saw luxury home sales rise as the market overcomes age-old housing challenges. Although the market saw little economic news, mortgages rates also rose. Ultimately, investors still focus on higher inflation.
As expected, the latest European Central Bank announcement came out this week. After months, they finally announced the expected policy change in its bond purchase program.
Key labor market data revealed mixed results, including dampened job gains missing the mark. However, a better unemployment rate counterbalanced those job gains.
This past week saw an informative ECB meeting and Fed report, indicating the best mortgage rate outcome heading into summer 2021. Despite a stronger than expected inflation report, investors focused elsewhere. Overall, the European Central Bank meeting provided a favorable result. Thus, mortgage rates ended the week a little lower. Informative ECB Meeting & Federal Reserve Report Thursday saw an informative ECB meeting. During the meeting, the European Central Bank (ECB) made no policy changes. Conclusively, the lack of change reflects the best-case outcome for mortgage rates. Simultaneously, the ECB made no mention of a specific time frame for starting to scale back its bond purchase program. For analysts, the meeting statement tone felt relatively dovish. Investors widely expect that the ECB tightens monetary policy rather than to loosen it. For now, holding steady exemplifies positive news. Meanwhile, the Federal Reserve reported that household net worth at the end of the first quarter of 2021 soared 3.8% higher than at the end of 2020. Roughly $3.2 trillion of gains originated from stocks. Aside from stocks, $1.0 trillion stemmed from increased real estate values. Core CPI Improves Aside from the informative ECB meeting, the Consumer Price Index report came out. Analysts [...]
Today, ECB comments led bond yields to spike around the world. The comments stemmed from an unnamed official at the European Central Bank. As a result, global bond yields rose.