Hey everyone,
Let’s dig into what’s been happening in the mortgage market over the past week. As you know, the economy can have a big impact on interest rates, so let’s break down some of the key reports that came out between September 9th and September 13th.
First, we had the Initial Jobless Claims report. This basically tells us how many people filed for unemployment benefits. If fewer people are losing their jobs, it’s generally a good sign for the economy, which can put upward pressure on interest rates. And guess what? The number of jobless claims came in lower than expected, so that’s something to keep an eye on.
Next up was the Durable Goods Orders report. This one focuses on big-ticket items like cars and appliances. If people are buying more of these things, it can also indicate a strong economy, which again can push rates up. The durable goods orders report was a bit mixed, but overall, it didn’t cause too much of a stir in the market.
Now, looking ahead to the week of September 16th to September 20th, there are a few more reports that could impact mortgage rates. The Personal Consumption Expenditure (PCE) index is one of them. This is the Federal Reserve’s preferred measure of inflation. If inflation is rising faster than expected, the Fed might feel the need to raise interest rates to cool things down. That could mean higher mortgage rates for us.
Another important report is the Gross Domestic Product (GDP). This measures the overall economic output of the country. If GDP grows more strongly than expected, it could also lead to higher interest rates.
So, there you have it! It’s a bit of a balancing act right now. Positive economic news can be good for the overall economy, but it can also lead to higher interest rates. It’s important to stay informed and be prepared for potential rate changes.