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Compliments of

JonathanWhite

President and CEO
Mortgage Broker | NMLS ID: 3443

Blue Door Mortgage, LLC

NMLS: 2218

Call: 617.527.BLUE (2583)

jwhiteloan@bluedoormortgage.com
www.bluedoormortgage.com

1280 Centre Street

Newton,MA02459

No Surprises

While there was major economic data released this week and a Fed meeting, there were no significant surprises. Mortgage rates ended the week a little higher.

Friday's key Employment report came in pretty much right on target across the board. Against a consensus forecast of 190,000, the economy gained 157,000 jobs in July. However, upward revisions added 59,000 jobs to the results for prior months. The economy has gained an average of 215,000 jobs per month so far this year, exceeding even the strong pace of 184,000 seen over this period last year.

The unemployment rate decreased from 4.0% to 3.9%, matching expectations. Average hourly earnings, an indicator of wage growth, also matched expectations. They were 2.7% higher than a year ago, the same annual rate of increase as last month.

As expected, the Fed made no policy changes at Wednesday's meeting. The Fed's statement was very similar to the prior one from the June meeting. The most notable change in the statement was that Fed officials modestly upgraded their assessment of the pace of economic growth. In particular, the statement said that economic activity "has been rising at a strong rate," while the prior statement described it as "solid." In addition, Fed officials noted that household spending and business investment have "grown strongly." In June, they just said that it had "picked up." Investors expect that the Fed will raise the federal funds for the third time this year at the next meeting on September 26.

Looking ahead, the JOLTS report, which measures job openings and labor turnover rates, will be released on Wednesday. Fed officials value this data to help round out its view of the strength of the labor market. The Consumer Price Index (CPI) will come out on Friday. CPI is a widely followed monthly inflation report that looks at the price change for goods and services. In addition, Treasury auctions on Wednesday and Thursday could influence mortgage rates.

Weekly Change

Mortgage rates

rose

0.02

Dow

rose

300

NASDAQ

rose

150

Calendar

Wed

8/8

JOLTS

Thu

8/9

PPI

Fri

8/10

CPI

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.

Posted by Jonathan White on August 3rd, 2018 12:40 PM

 

Compliments of

Jonathan White

President and CEO
Mortgage Broker | NMLS ID: 3443

Blue Door Mortgage, LLC

NMLS: 2218

Call: 617.527.BLUE (2583)

jwhiteloan@bluedoormortgage.com
www.bluedoormortgage.com

1280 Centre Street

Newton, MA 02459

     

 

Data Exceeds Expectations 

 

The major U.S. economic data released over the past week was stronger than expected. Upside surprises were seen in GDP, durable orders, housing, and inflation. The impact on mortgage rates was small, however, and rates ended the week just a little higher. 

 

The Core PCE price index is the monthly inflation indicator preferred by the Fed, and the readings for January showed that inflation is rising more quickly than expected. Last week's CPI inflation report contained a similar message. 

 

Core PCE, which excludes the volatile food and energy components, was 1.7% higher than a year ago, up from 1.3% just two months ago, and the highest level since February 2013. Low levels of inflation have helped keep mortgage rates low. If the trend toward higher inflation continues, it would be negative for mortgage rates. 

 

The housing data released over the past week was mixed, but the much more significant report was encouraging. January existing home sales, which make up about 90% of all home sales, increased to near the best level in seven years. They were 11% higher than a year ago. New home sales, which make up the rest of the market, declined in January. Low mortgage rates and solid job gains are having a nice effect on home sales. 

 

Fourth quarter GDP was revised higher from 0.7% to 1.0%, above the consensus for a decline to 0.4%. GDP, the broadest measure of economic activity, recently has been volatile from quarter to quarter. The consensus is that 2016 will start on a better note. First quarter GDP growth is expected to rise to 2.0%, well above the levels seen during the first quarters of 2014 and 2015. 

 

 

Looking ahead, the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before that, Pending Home Sales will be released on Monday. The ISM national manufacturing index will come out on Tuesday, and the ISM national services index will come out on Thursday.

 

 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.

 

 

 

Posted by Jonathan White on February 26th, 2016 4:20 PM


MSN

Buying a home in your 20s might seem like a long shot, but in fact, many 20-somethings can -- and do -- make the leap into homeownership.

Millennials, defined by the National Association of Realtors (NAR) as homebuyers up to age 34, made up the largest group of recent homebuyers at 32 percent, according to a recent NAR survey.

http://www.msn.com/en-us/money/homebuyerguide/how-to-buy-a-home-in-your-20s/ar-AAajoq4#page=1

 

Posted by Jonathan White on October 12th, 2015 4:49 PM

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