My New Blog

Mortgage rates were flat again this week

September 11th, 2015 1:45 PM by Jonathan White

 

Compliments of

Jonathan White

President and CEO
Mortgage Broker | NMLS ID: 3443

Blue Door Mortgage, LLC

NMLS: 2218

Call: 781.235.2583 (BLUE)

jwhiteloan@bluedoormortgage.com
www.bluedoormortgage.com

1280 Centre Street

Newton, MA 02459

     

 

Waiting for the Fed

 

There was little market moving economic news for mortgage rates over the past week. Ahead of the upcoming Fed meeting, mortgage rates again ended the week with little change. 

 

Investors remain divided about whether the Fed will raise the federal funds rate on Thursday. Fed officials have stated that policy decisions will be determined by the performance of the economy, but recent comments reveal mixed views on whether the conditions for a rate hike have been met. The labor market has continued to perform well, but the inflation rate remains well below the Fed's target level of 2.0%. The uncertainty about the outcome makes it likely that Thursday's Fed statement and press conference will cause a large market reaction. 

 

Following the decline in the unemployment rate to a multi-year low seen last week, additional labor market data released on Wednesday contained more good news for the economy. The JOLTS report indicated that job openings in July jumped to the highest level since the data collection began in 2000.

 

In addition, the "quit" rate remained high. Economists generally view a willingness for employees to voluntarily leave their jobs as a sign that they have confidence in their prospects for finding a new job. The number of hires declined in July, possibly indicating that employers need to raise wages to attract workers.

 

 

The highly anticipated Fed statement and press conference will take place on Thursday. With investors divided about the outcome, it likely will be a volatile session. Before that, Retail Sales will be released on Tuesday. Retail Sales account for about 70% of economic activity. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for finished goods which are sold to consumers. Housing Starts will be released on Thursday. 

 

 

 

 

 

Posted in:General
Posted by Jonathan White on September 11th, 2015 1:45 PM

Archives:

My Favorite Blogs:

Sites That Link to This Blog: