{"id":2544,"date":"2020-08-14T06:00:00","date_gmt":"2020-08-14T06:00:00","guid":{"rendered":"https:\/\/www.mbsquoteline.com\/home\/?p=2544"},"modified":"2022-04-02T15:01:09","modified_gmt":"2022-04-02T15:01:09","slug":"retail-sales-rise-after-wonderful-july-consumer-spending-rebound","status":"publish","type":"post","link":"https:\/\/www.mbsquoteline.com\/home\/2020\/08\/14\/retail-sales-rise-after-wonderful-july-consumer-spending-rebound\/","title":{"rendered":"Retail Sales Rise After the Wonderful July Consumer Spending Rebound"},"content":{"rendered":"\n

This week, the United States economy saw retail sales rise. However, they had a minimal reaction on mortgage rates. Additionally, stronger than expected inflation data and a new fee on refinances reflected negatively for mortgage rates. After reaching record-low levels last week, rates moved higher.<\/p>\n\n\n\n

Retail Sales Rise as Consumer Spending Rebounds<\/h2>\n\n\n\n

Due to the coronavirus, consumer spending dropped sharply in March and April in conjunction with the shutdown. However, July saw retail sales rise with an increase of 1.2%. In addition, analysts revised June results to be significantly higher. While retail strength distributed broadly, electronics, appliances, and health products demonstrated a good month.<\/p>\n\n\n\n

\"retail<\/a><\/figure><\/div>\n\n\n\n

Consumer Price Index Leads to Higher Inflation Forecast<\/h2>\n\n\n\n

As retail sales rise, investors also pay close attention to inflation. Although reduced economic activity initially caused an inflation decline, July\u2019s core CPI came in 1.6% higher than a year ago. Despite this statistic being lower than the 2.0% seen prior to the pandemic, it still improved from the previous month\u2019s 1.2%. Since higher inflation generates a negative effect for for mortgage rates, they rose after the news.<\/p>\n\n\n\n

Federal Housing Finance Agency Announces Refinancing Fee<\/h2>\n\n\n\n

Aside from the CPI and retail sales rise, the Federal Housing Finance Agency (FHFA) announced a new refinance fee of 0.5% on Wednesday. The fee will be assessed for cash-out and no-cash-out refinances sold to Fannie Mae and Freddie Mac after September 1st<\/sup>. Lenders varied in how quickly they are passing along this fee to consumers. Overall, current refinancing pipelines and activity capacities dictate their decisions.<\/p>\n\n\n\n

Looking Ahead After Retail Sales Rise<\/h2>\n\n\n\n

After retail sales rose, investors continue watching for news about medical advances, government stimulus programs, Fed monetary policy changes, and plans for reopening the economy. Beyond that, we\u2019re looking at a very light week for economic data with the housing sector in the spotlight. Housing Starts release Tuesday and Existing Home Sales come out on Friday.<\/p>\n\n\n\n

\n\n\n\n

Following the rise in retail sales, mortgage rates hover at their highest point since the middle of 2019. Never miss an update with MBSQuoteline. To receive by-the-minute updates on mortgage-backed securities, try our platform free for 14 days.<\/strong><\/a><\/p>\n\n\n\n

\"retail<\/a><\/figure><\/div>\n\n\n\n

Stay connected with MBSQuoteline on social media by following us on Facebook<\/a>, Twitter<\/a>, and LinkedIn<\/a>.<\/p>\n\n\n\n

All material Copyright \u00a9 Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission. To learn more about the MortgageTime\u2122 newsletter, please contact MBSQuoteline at 800.627.1077<\/a> or info@mbsquoteline.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week, the United States economy saw retail sales rise, though they caused a minimal reaction for mortgage rates.<\/p>\n","protected":false},"author":9,"featured_media":3963,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[426],"tags":[81,442,472,420,444,82,405,103,31,106,368,56,33,441,448],"class_list":["post-2544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-consumer-price-index","tag-consumer-spending","tag-core-cpi","tag-coronavirus","tag-covid-19","tag-cpi","tag-existing-home-sales","tag-fannie-mae","tag-federal-reserve","tag-freddie-mac","tag-housing-starts","tag-inflation","tag-mbs","tag-mortgage-backed-securities-2","tag-retail-sales"],"_links":{"self":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/2544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/comments?post=2544"}],"version-history":[{"count":4,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/2544\/revisions"}],"predecessor-version":[{"id":4182,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/2544\/revisions\/4182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/3963"}],"wp:attachment":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=2544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=2544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=2544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}