ECB Holds Steady - Bad for U.S. Mortgage Rates
Thursday's European Central Bank (ECB) meeting was viewed as negative for U.S. mortgage rates. The economic data released this week had little impact. As a result, mortgage rates ended the week a little higher. Some investors were disappointing by Thursday's decision by the ECB to make no change in monetary policy. To help ease the impact of the June 23 Brexit vote, some wanted to see the ECB provide additional stimulus. Looser monetary policy from global central banks with bond purchase programs has been viewed as positive for mortgage … [Read More...]
Last week's economic events included S&P Case-Shiller's Housing Market Indices for April along with reports on Construction Spending and Pending Home Sales. Consumer Confidence was higher in June in spite of low wage growth and inflation well below the Fed's goal of 2.00 percent annually.
S&P Case-Shiller: Home Price Growth Ticks Downward
April home values grew by 5.40 percent in April on a seasonally-adjusted annual basis. Case Shiller reported a drop in momentum from the March reading of 5.50 percent according to the S&P Case-Shiller 20-City Home Price Index. While no city … [Read More...]
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Last week's economic news was dominated by Great Britain's vote to withdraw from the European Union. New and Existing Home Sales were released along with weekly reports on mortgage rates and new jobless claims.
"Brexit" Vote Tanks Stocks, Could Cause Lower Mortgage Rates
US stocks plunged in reaction to the news of Britain's decision to leave the EU and the resignation of its Prime Minister. While investors don't want to see their 401(k)
values crash, mortgage rates may also fall as a result of "Brexit". Fallout caused by economic uncertainty connected with Great Britain's move to … [Read More...]
UK Votes to Exit
A shocking British vote to exit the European Union sent both stocks and mortgage rates much lower today. The other economic news had little influence. As a result, mortgage rates ended the week lower, near the best levels since early 2015.
While the final polls ahead of the vote were close, the vast majority of investors expected the UK to vote to remain in the European Union. When the outcome indicated that the UK will exit the EU, the resulting uncertainty caused investors to swiftly shift to safer assets today. Global stock markets sold off sharply and bond yields … [Read More...]
Mortgage rates fell after Federal Reserve policymakers decided not to raise the Fed's target federal funds rate. The Federal Open Market Committee cited ongoing concerns over global financial and economic developments and slow jobs growth as factors in its decision not to raise rates. Fed Chair Janet Yellen emphasized the committee's decision-making process is not predetermined and said that ongoing review of current and developing news is significant to monetary policy decisions.
Last week's economic news also included the NAHB Housing Market Index, the monthly inflation rate and retail … [Read More...]