Last week’s biggest economic headline centered on inflation news and the consumer price data that came out showing the CPI (consumer price index) rising by 0.6 percent for the month, higher than expected. The main reason? Energy prices, mainly oil prices, which, if you’ve been to the gas station recently, is no surprise.
The core CPI, which excludes energy prices because of their volatility, did drop from 4.7 percent annual rate to 4.3 percent.
Partly as a result of inflation news and economic strength, mortgage rates moved higher this week, according to Freddie Mac’s weekly survey. Freddie Mac’s chief economist, Sam Khater, also reported on research that shows buyers that seek out multiple lenders, on average, get a better deal on their mortgages, saving $600-$1,200 annually.
He’s absolutely right, and in addition, having a broker – like me – that’s like your personal shopper and an expert at finding you the best lender and the best mortgage with the best terms that suit your specific needs, you have a greater likelihood of saving money on your mortgage. So, when you are considering your next mortgage, let’s talk about your best scenario.
As for what I’m watching this week…
The Fed meets this week, and although most analysts believe that the Fed will pause raising rates this time, there’s still much speculation as to what they’ll do and, in turn, what their statement will include when the meeting adjourns later on Wednesday. The bond market has been pretty calm ahead of the meeting, but we’re all eagerly anticipating the final verdict for this meeting.
There’s also some important housing market data coming out as we continue to monitor the health of housing. First, the leading indicator on new housing starts and building permits came out on Tuesday. After rising from 1.4 million in June to 1.45 million in July, housing starts in August were expected to fall back to a 1.4 million annual rate; however, their fall was much greater, coming in at 1.28 million. Permits, on the other hand, jumped much higher to 1.54. Permits, which held steady at 1.442 million in July, were expected at 1.440 million.
On Thursday, we’ll get a look at the latest numbers for Existing Home Sales. After July’s subdued 4.07 million annual rate, sales in August are expected to firm slightly to a 4.10 million rate. The National Association of Realtors has been citing lack of available inventory and rising mortgage rates for the slow pace of sales.
Of course, I’ll be keeping an eye on all of it and will report back next week. Have a great one!
