Following recent week’s burst of major economic headlines, which were mostly negative for mortgage rates, there was very little market moving news last week. Mortgage rates reversed a portion of recent week’s increases, ending the week a little lower.
After recent week’s fiscal cliff deal, Fed meeting, and Employment data, last week’s news had little impact on mortgage rates. Very little economic data came out last week, and the results for the Treasury auctions were close to average. A meeting of the European Central Bank (ECB) produced no surprises. In short, after weeks of high volatility, daily mortgage rate movements were relatively small last week.
The much anticipated Qualified Mortgage regulation was released this week by the CFPB. This rule, when first proposed, caused concern in the housing industry for how its requirements might overly restrict mortgage availability. As released, though, it should have very little impact on mortgage availability, and much of what will be required under the regulation (when it becomes effective a year from now) is common practice today.
The most significant economic data this week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales will be released on Tuesday. Retail Sales account for about 70% of economic activity. Industrial Production and the Fed’s Beige Book are scheduled for Wednesday. Housing Starts will come out on Thursday. Consumer Sentiment and Philly Fed will round out the schedule.
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