Mortgage Market Update August 11, 2018
While there has been a lot of volatility in mortgage rates over the past year, this week was relatively calm with not many changes. There was some significant economic data released over the past week. The most significant piece of economic data released was the updated Consumer Price Index (CPI), which is one of the most heavily watched inflation indicators.
This past month, the core CPI was up 2.4% in July, compared to the period a year prior. This increase was in line with financial expert predictions and was up slightly higher than the 2.3% reported in June. This was also the highest level reported since September 2008.
While the CPI rate went up in July, the Producers Price Index (PPI) actually went down a little bit. The PPI metric is a measurement of goods and raw materials that are used by companies to produce finished goods. This is often a good indicator of what the final cost of consumer products will be. The PPI rate in July was up 2.7% year-over-year, which is down compared to the 2.8% metric in June 2018.
Another report, the JOLTS report, was released. This report measures current job openings compared to people looking for jobs. The most recent report shows that there actually slightly more open positions in the economy than people that are actively looking for jobs. There was also a large number of people that willingly left their jobs, which further shows signs of economic strength.
Core Mortgage Financial will continue to watch the markets, rest assured you picked the right company to protect your interest rate.
There will be additional major reports coming out in the next week. This week, retail sales, industrial production, and housing starts will all be released, which could have an impact on mortgage rates.
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