December 11th, 2015 1:28 PM by Jonathan White
Mortgage Market News for the week ending December 11,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
1280 Centre Street
Newton, MA 02459
are affected by many different market forces. Often it is economic data
and its impact on the outlook for inflation. This week, the biggest
influence on mortgage rates came from the drop in the price of oil and
its effects on the stock market. Stocks declined, and mortgage rates
ended the week a little lower.
The price of
oil declined during the week to the lowest level in seven years.
This is great for consumers, but has mixed effects on financial markets.
The drop weighed heavily on energy stocks and concerns spread throughout
the broader stock market. Investors sold stocks and bought safer
investments like government-backed mortgage-backed securities (MBS). The
added demand for MBS pushed mortgage rates lower.
cash in their pockets from lower gas prices, consumer spending in other
areas showed solid improvement in November. After three disappointing
months, retail sales, excluding volatile auto sales, rose nicely.
Consumer spending accounts for about 70% of economic output in the
U.S., and the retail sales data is a key indicator.
Next week, the
highly anticipated Fed meeting will take place on Wednesday. If the Fed
raises the federal funds rate as widely expected, investors will be
looking for guidance about the pace of future rate hikes. Before that,
the consumer price index (CPI), the most closely watched monthly
inflation report, will come out on Tuesday. Industrial Production, an
important indicator of economic activity, and Housing Starts will be
released on Wednesday.
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