Frank Nothaft
Frank Nothaft
confidence consumer fell growth hit keeping less lower means mortgage rates report result slower spending week year
Mortgage rates fell this week as a result of the Consumer Confidence report , which hit a 4-1/2 year low. Lower confidence translates into slower consumer spending. Less spending means less growth, and less growth means less inflationary pressure, keeping mortgage rates affordable.
combined confidence consumer continue housing low market prosper rates strong summer
Low rates combined with the up-tick in consumer confidence are strong indications that the housing market will continue to prosper into the summer months,
april concerns consumer decline larger market picture price producer released state tomorrow
The Producer Price Index for April, released today, showed a considerably larger decline than had been expected, reaffirming market concerns about the state of the economy. However, the Consumer Price Index for April that will come out tomorrow will give us a much more comprehensive picture of what is actually happening.
action august board chance consumer current drifted federal further interest labor later likely market meets raise rates reserve slight slowing until
There is a slight chance the Federal Reserve Board will raise rates when it meets later this month, but with the current labor market and slowing consumer spending, it is more likely that it will take no action until August at the earliest. As a result, short-term interest rates, such as the one-year adjustable-rate mortgage, drifted further down this week.
confidence consumer economists expect housing low mac market months mortgage rates remain strong
With mortgage rates low and consumer confidence high, Freddie Mac economists expect the housing market to remain strong in the months ahead.
compared consumer credit employment growth helped higher highest interest january jump level mortgage push rates since strength unexpected
The strength in employment growth and an unexpected jump in consumer credit in January helped push mortgage rates a little higher this week. While long-term interest rates are at the highest level since May of 1998, they are still very affordable, particularly when compared to the 1970s and 1980s.
concern consumer continued cut declining drop economy federal helped housing interest mortgage overall rates recent since spite support weakness year
The Federal Reserve's recent cut in interest rates and a continued concern over weakness in the overall economy contributed to another drop in mortgage rates this week. In spite of the slowdown in other sectors and a lessening of consumer confidence, declining mortgage rates since the first of the year have helped to support housing activity.
consumer deflation economy housing indicate leading pick price ready released reports starts stronger suggesting together week
The Consumer Price Index released this week showed no decline, suggesting that the possibility of deflation is still low. Housing starts were stronger than expected, as were the leading indicators released today. All of these reports together could indicate the economy is ready to pick up growth.
concern consumer economic expected fear growth income inflation matter moderate personal quarter recovery seems slower spending
There seems to be some concern in the marketplace that the economic recovery will be slower than expected , lessening the fear of inflation. As a matter of fact, personal income and consumer spending growth for the first quarter were moderate and showed inflation to be well constrained.
caused consumer drift economy financial holiday including initial interest kept markets mortgage potential sales spending upwards
Consumer spending has kept the economy moving, and when initial holiday sales were better than expected, financial markets reacted with enthusiasm. It was this potential pick-up in the economy that caused interest rates, including mortgage rates, to drift upwards this week.
board change combined data economic elected factors federal future interest key mortgage negative painted picture pressures rates reserve slightly week
With productivity up and inflationary pressures muted, the Federal Reserve Board elected this week not to change a key short-term interest rate. Moreover, most other economic data releases, such as unemployment and manufacturing, painted a slightly negative picture for future economic growth. These factors combined to keep mortgage rates stable.
continues current economy expand housing inflation issue large lending low market mortgage rates recession remain signs
As the economy continues to show signs that the recession is ending, the housing market continues to expand thanks, in large part, to current low mortgage rates. And as long as inflation is not an issue in the economy, lending rates should remain around 7 percent.
add confident core data drop economic fact fed feeling financial inflation less markets mortgage raise rates recent shows time
Financial markets are feeling more confident that the Fed will not raise rates any time soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again.
both dropping existing home housing july june levels sales somewhat starts took
Both existing home sales in June and housing starts in July took a breather, dropping to somewhat more sustainable levels of activity,