Taking a look back at the May 2022 mortgage market, investor expectations surrounding inflation stabilized to some degree.
In recent months, high inflation (and higher mortgage rates) took a large toll on mortgage application volumes.
In a relatively quiet week for mortgage markets, investors saw steady job gains in the leisure and hospitality sectors.
Although the latest core PCE met expectations, investors grow increasingly concerned with slowing global economic growth.
While much of this week’s economic data met investor expectations, consumer spending surged in April 2022.
Last month, investors focused on elevated inflation levels on as April 2022 mortgage rates climbed to their highest levels since 2009.
With the release of the April 2022 Core CPI data, inflation began to ease. This modest inflation decline allowed mortgage rates to stabilize.
As expected the Fed announced a rate hike this week in their latest step to combat inflation while Employment neared its consensus.
In a light week of economic reporting, the major news encompassed the latest GDP reading, which fell to the lowest level since spring 2020.
In a light week of reporting, March home sales fell as the real estate market grew increasingly aggressive.