The Trade Balance has offered little new insight, as it has largely returned to levels seen prior to the earlier period of unstable tariff policies. Consumer Credit had been trending upward nearly every month; however, this latest report breaks that pattern by showing a decline in consumer credit usage. Meanwhile, the Fed’s Minutes revealed nothing particularly substantial, instead reflecting a dovish stance and a willingness to maintain current interest rates for the foreseeable future.
Unemployment data has shown some rather interesting statistics, with the lowest unemployment rates in the last 14 months being reported. Looking closer at the statistics shows that the unemployment rate hasn’t just dropped due to more people finding work, but also because a significant number of people have stopped looking for work, causing the numbers to appear more favorable.
The latest Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, has been released. The report indicates that inflation remains elevated across most sectors, although the overall reading came in slightly below expectations.
Many prospective homebuyers spend months waiting for mortgage rates to fall before making a move. While securing a favorable interest rate is important, focusing exclusively on rates can sometimes cause buyers to overlook other factors that affect the overall cost of homeownership. In some situations, waiting for lower rates may actually end up costing more than moving forward today.
The week was relatively light following the release of the prior inflation data and the FOMC rate decision. The Federal Reserve decided to keep its overnight borrowing rate unchanged and has indicated no plans to make changes in the near term.
With the inflation reports showing their cards, the Consumer Price Index has shown to be in line with expectations, but unexpectedly the Producer Price Index has come in substantially higher than expected.
Comparing mortgage rates can feel simple at first. A buyer asks a few lenders for a rate, looks for the lowest number, and assumes that is the best option. But rate quotes can be more complicated than they appear. To compare lenders fairly, you need to know what is behind the quote.
Unemployment data has been released, revealing an interesting trend: different demographic groups are facing varying, and in some cases significantly higher, levels of unemployment.
The PCE Index inflation data has been released on schedule, and it paints a rather grim outlook for the future. Inflation has reached a three-year high, and given that it is the Federal Reserve’s preferred measure of inflation, it does not bode well for any impending rate cuts and may even raise the possibility of future rate increases.
This is somewhat offset by consumer spending having exceeded expectations, but this appears to be entirely related to high fuel prices, whether consumers want to spend that much or not.
With the prior week’s release of the inflation data and next week’s release of the PCE Index data — the Federal Reserve’s preferred inflation measure — it has been an exceptionally light week for economic releases. The only notable reports were Leading Economic Indicators and Consumer Sentiment, both of which showed declines. Consumer sentiment, in particular, has seen a significant drop since the change in administration, reaching lows not seen in decades.