In a really surprising week, analysts saw retail sales jump far above the consensus while Consumer Price Index failed to reach it.
When examining July 2021’s economic reports, enormous job growth rippled across the economy as unemployment benefits abruptly ended.
While significant economic news came out this week, retail sales dropped. In spite of this, the travel and entertainment industries saw a major a boom.
As inflation moderates, investors focus on new consumer price index (CPI) findings. During a light week, they looked towards the CPI inflation report for guidance.
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 [...]
This past week was quiet seeing few economic developments, though housing inventory continues to really compromise home sales results.
Inflation spiked this week leading to a new mortgage rate reckoning. As a result, mortgage rates ended higher.