With the U.S. facing a tight labor market, record-setting inflation, and supply chain issues, December 2021 mortgage markets fluctuated.
Closing out 2021, the United States achieved a record-setting Core PCE Price Index. In doing so, Core PCE hit its highest level since 1989.
In light of breaking news, the investors are ready for the Fed tapering bond purchasing. This past week saw enormous daily volatility in mortgage-backed securities markets.
In a short week, core PCE shows inflation quickly soaring in time for the holiday season while investors worry about price increases
After months of slow recovery, inflation remains high. Meanwhile, the latest GDP reported showed a negative impact on supply chain growth.
This past week, analysts and investors closely watched the latest employment report. Unfortunately, it revealed that job gains went down, falling short of expectations.
This week saw steady inflation results while the manufacturing sector performed better. Overall, the economic data revealed no significant surprises.
This week, mortgage rates fluctuate unbelievably in the wake of Wednesday's Fed meeting. This fluctuation included their largest movement in sometime.
Investors focus on targeted MBS buying as Fed nears goals. However, Fed Chair Powell did not provide an updated timeline for policy changes. As a result, mortgage rates ended the week slightly higher.