Last week’s economic reporting included readings on inflation and the University of Michigan’s preliminary February reporting on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released. Inflation Rises as Fed Considers Raising Key Rate The government’s Consumer Price Index for January reported that month-to-month inflation rose by 0.60 percent as compared to an expected increase of 0.40 percent which was based on December’s month-to-month increase of 0.50 percent. Year-over-year inflation rose to a rate of 7.50 percent, which was the highest inflation rate in 40 years. Core inflation, which excludes volatile food and energy … [Read more...]
Why Purchasing A House In 2022 Is Smart Despite Inflation
Anyone who has paid attention to the news has likely noticed that inflation is a constant headline. Inflation takes place when the average cost of goods and services begins to rise. There are a number of reasons why inflation has been rising at record rates during 2021 and 2022. The federal government has pumped money into the economy, and supply chain constraints have led to a shortage of goods. This means that everything from cars to groceries has gotten more expensive. Many individuals and families are looking for ways to save money, and this might mean putting off homeownership dreams. Even though housing prices have gotten more expensive as well, inflation should not stop someone from … [Read more...]
What’s Ahead For Mortgage Rates This Week – January 18, 2022
Last week’s scheduled economic reporting focused on inflation with monthly and year-over-year readings on overall and core inflation. Federal Reserve Chair Jerome Powell was confirmed for a second term as Federal Reserve chair. The University of Michigan released its monthly survey on consumer sentiment and weekly readings on mortgage rates and jobless claims were also released. Inflation Rises in December; Nears Fastest Growth Pace in 40 Years Year-over-year inflation rose to a pace of seven percent in December and approached its fastest growth rate in 40 years according to the Bureau of Labor Statistics. Analysts expected year-over-year inflationary growth of seven percent as … [Read more...]
FOMC Statement: Fed Policymakers Discuss Easing Accommodations as Economy Improves
The Federal Reserve’s Federal Open Market Committee considered easing monetary accommodations implemented in response to stronger economic conditions according to its post-meeting statement issued November 3. The Fed started making trillions in monthly bond purchases when the pandemic started but slowed its purchasing pace to $120 billion per month in June 2020. The Fed will soon reduce its monthly bond purchases to $105 billion monthly. The Fed said it will continue to purchase bonds until the economy makes “substantial progress” toward its legally mandated goals of achieving two percent inflation and maximum employment. Supply shortages and high demand for goods caused by … [Read more...]
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