Continued economic uncertainty led to a slight pullback in mortgage rates last week, according to Freddie Mac’s weekly survey of average rates. Yes, rates remain at levels considerably higher than they were this time last year; however, this pullback offered borrowers a little respite. And remember, if you plan to buy soon we have some really interesting options that can help with affordability – many more choices out there than just the conventional loans. And I can guide you through the best options for you!
Likely part of the pullback in rates had to do with job growth slowing as Friday’s Jobs Report showed new job creation at 263,000 compared to the prior month at 315,000. Interestingly, the unemployment rate remained steady at 3.5 percent, signaling a healthy labor market.
This is a holiday-shortened week with markets closed on Monday in observance of Indigenous Peoples Day/Columbus Day. As for the rest of the week, we’ll see some critical inflation data come out as well as the latest Retail Sales numbers on Friday. Consumer spending accounts for two-thirds of our nation’s economy so we always keep an eye on what’s happening with retail sales as an indicator of the health of the economy.
On Wednesday we get a look at wholesale inflation. Producer prices have been cooling, and further cooling would be good news! September’s expectations are up 0.2 percent overall for the month and up 0.3 percent for the core. The annual rate is expected to fall slightly from 8.7 percent to 8.4 percent.
Hot on the heels of wholesale prices comes the Consumer Price Index (CPI). Core prices surged 0.6 percent in August with a noticeable slowing to 0.4 percent expected for September. Overall prices are expected to rise 0.2 percent after August’s 0.1 percent gain. Annual rates are expected to fall slightly at 8.1 percent overall and 6.5 percent which would compare with the prior month’s 8.3 and 6.3 percent.
Retail Sales have been flat, hovering around the zero mark across major readings. Friday’s report on Retail Sales is predicted to show for September sales rose 0.2 percent overall, down 0.1 percent when excluding vehicles and up 0.4 when also excluding gasoline.
I’ll be watching it all and report back next week!
