August 14th, 2015 5:08 PM by Jonathan White
Mortgage Market News for the week ending August 14,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Co. NMLS MB2218
Wellesley, MA 02481
move in China helped mortgage rates improve early in the week. Stronger
than expected U.S. economic data had the opposite effect later
in the week. After the offsetting influences, mortgage rates ended
long held its currency, the yuan, at a fixed value versus the dollar.
On Tuesday, China unexpectedly implemented a policy change which let
the value of the yuan drop versus the dollar. Mortgage rates improved
on the announcement because investors saw the move as an indication
that the Chinese economy is slowing more quickly than expected. If this
is true, global inflationary pressure will fall. In addition, US exports
to China likely will slow as U.S. goods and services will be more
costly, further reducing inflationary pressure. Lower inflation is
positive for mortgage rates.
economic data told a different story about the outlook for inflation.
Retail sales account for about two-thirds of U.S. economic activity.
The report released Thursday revealed that retail sales rose solidly
in July, but this was expected. The surprise was that the
disappointing results for June were revised significantly higher.
Friday's report on industrial production, another important indicator
of economic activity, also exceeded expectations.
ahead, Housing Starts will come out on Tuesday. The Consumer Price
Index (CPI), the most closely watched monthly inflation report, will
come out on Wednesday. The Minutes from the July 29 Fed meeting
also will be released on Wednesday. These detailed Minutes provide
additional insight into the debate between Fed officials. Existing Home
Sales and the Philly Fed regional manufacturing index will come out on
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