As inflation surges to the highest level since 1982, the mortgage market left investors stunned after months of remaining on-edge.
This week, the key Employment report revealed enormous job gains for the United States labor market, leading to higher mortgage rates.
As consumer spending drops, investors focus on two major pieces of data this week: retail sales and inflation.
In back-to-back months, the United States realized wondrous inflation. Not only did inflation reach a 30-year high in October, it did so again immediately after in November.
The latest few months highlight the trend of the United States resurgence suffering. Key data revealed mixed results throughout the economy.
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.
The monthly employment report brought stronger than anticipated data as the U.S. achieved breakthrough job gains and strong ISM data.
After last year's events, no one prepared for an unpredictable 2021 as experts worry about inflation, recovery, and COVID-19.
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 marked disappointment in the labor market as job gains see a startling plummet. The major economic data accompanied by Friday's labor market report fell well below analyst expectations.