February 19th, 2016 3:00 PM by Jonathan White
Mortgage Market News for the week ending February 19,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
1280 Centre Street
Newton, MA 02459
spiked higher late last week, as investors bought stocks and sold bonds.
The volatility continued this week, but the net effect was favorable for
mortgage rates. Despite an upside surprise in the CPI inflation data and
stock market gains, mortgage rates ended the week a little lower.
Price Index (CPI) is the most widely followed monthly inflation
indicator, and the readings for January were higher than expected. CPI
was 1.4% higher than a year ago, which was the highest level since
which excludes the volatile food and energy components, was 2.2% higher
than a year ago, which was the highest level since June 2012.
Economists often look at core inflation rather than the overall rate to
get a clearer sense of the underlying trend.
forces have helped hold down inflation over the past year, including the
stronger dollar and lower oil prices, the service sector has
remained strong and costs have been rising. In particular, shelter and
medical costs have increased over the past year. Mortgage rates are
highly influenced by the outlook for future inflation. If the trend
toward higher inflation accelerates, it would be negative for mortgage
Existing Home Sales will be released on Tuesday and New Home Sales on
Wednesday. Durable Orders, an important indicator of economic
activity, will come out on Thursday. The Core PCE price index, the Fed's
preferred inflation indicator, and the second estimate of fourth
quarter GDP will be released on Friday. In addition, there will be
Treasury auctions on Tuesday, Wednesday, and Thursday.
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