Weekly Economic Update - 3.12.18
I hope you had a great weekend and survived Monday.
RATE MOVEMENT (from prior week) SLIGHTLY HIGHER
A wide range of events influenced mortgage rates last week, including important labor market data, a European Central Bank meeting, and government policy changes. Some were positive and some were negative. The net effect was mortgage rates finished the week higher.
IMPORTANT ECONOMIC FACTORS:
JOBS DATA - An upside surprise in job gains in Friday's Employment report was negative for mortgage rates. The economy gained an enormous 313,000 jobs in February, the largest total since July 2016. Construction firms added 61,000 workers, the highest monthly increase in nearly 11 years.
PRESIDENT TRUMP – Took a firm stance on imposing global tariffs on all steel and aluminum imported into the U.S. Uncertainty about how other countries would react caused investors to shift to safer assets, which was good for mortgage rates. However, following resistance from many top political leaders and economists, Trump eased his stance, which was mildly negative for mortgage rates.
Looking ahead, The Consumer Price Index (CPI) will come out tomorrow, and Retail Sales will be released on Wednesday. Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator. There will also be Treasury auctions this week which could influence mortgage rates.
Please let me know if you have any questions in regards to this, or if there is anything we can do for you.
Thank you for your continued support, have a productive week.
SVP, Regional Manager