Mortgage Weekly Update - Last Week in Review - Mortgage rates increased
Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports....Big Ben (Bernanke) halted the long string of rate hikes even though inflation is a bit higher than the Fed wants, so Ben has "played ball" by patiently waiting for inflation to settle down to the desired range between 1% - 2%. But while "Ben-Ball" has been "berry berry" good to bonds so far, all that may change after last week's economic data.
The Fed closely watches the rate of inflation and uses the Core Personal Consumption Expenditure (PCE) Index as its favorite gauge. And last week the Fed was thrown a curve, as the PCE increased more than expected during February for the largest monthly spike since August. As previously mentioned, the Fed wants inflation no higher than 2%, and the annual rate of PCE just rose to 2.4% from the previous reading of 2.3%.
Also of note, the Personal Savings Rate remains negative at -1.2%. It appears that achieving a meaningful amount of savings for many Americans is as tough as hitting a pitch from Mariano Rivera. Mortgage Bonds worsened during the week, causing Home Loan Rates to increase modestly... Read more.
- Foster Weeks
posted by SFResidence.com @ 8:27 AM
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