GDP (Gross Domestic Product) is the broadest measure of economic activity. U.S. happy to see the GDP rose at a rate of 2.9% in the fourth quarter.
Looking back at October 2022 MBS trends, inflation once again dominated headlines as the Federal Reserve and ECB continue to raise rates.
As mortgage rates reached their highest rates in over twenty years, September existing home sales fell for the eighth straight month.
After months of upward momentum, July 2022 mortgage markets finally reflected reduced inflationary pressures.
Although this week’s Federal Reserve meeting revealed no surprises, the Fed launched its 75-basis point increase. Notably, this federal funds rate hike matches the largest since 1994.
As the European Central Bank faces record-high inflation levels, this week’s biggest news marked the first ECB rate increase in 11 years.
In a light week of economic reporting, the major news encompassed the latest GDP reading, which fell to the lowest level since spring 2020.
Last month, January 2022 mortgage rates achieved their highest levels since early 2020 as investors again saw record-setting inflation.
With Wednesday’s Federal Reserve meeting, the continual conversation revolving the Fed tapering bond purchases took an interesting turn.
Capping off last year, the United States experienced strong 2021 home sales after they notoriously plummeted throughout a sluggish 2020.