Inflation Surges at Fastest Pace Since 2008, Putting Upward Pressure on Mortgage Rates
The Consumer Price Index jumped 0.9% in June and 5.4% from the same month last year, according to Labor Department data released Tuesday.
The Consumer Price Index jumped 0.9% in June and 5.4% from the same month last year, according to Labor Department data released Tuesday.
The purchase share of the market rose to 47% of originations in May, the highest since the beginning of the pandemic, according to a report from Ice Mortgage Technology.
Bond investors who exert the biggest influence on home loan rates are focused this week on a Tuesday inflation report and a double-header appearance in Congress by Fed Chairman Jerome Powell.
More than half of respondents to the Goldman Sachs' July QuickPoll said they believe the Fed won't begin tapering purchases of Treasuries and mortgage bonds until next year.
Every homebuyer is hoping to get approved for a mortgage at the current, historically low rates, but experts warn that only people who have high credit scores are likely to receive them.
Home loan rates are falling in tandem with Treasury yields, which serve as a benchmark for mortgage-bonds, as investors worry about a resurgence of the Covid-19.
Federal Reserve policymakers are in no rush to tighten monetary policy and taper its asset-purchasing program, according to minutes of its June meeting released on Wednesday.
The U.S. economy added 850,000 jobs in June, the biggest gain in 10 months, boosted by hiring in retail and residential construction, according to a Labor Department report.
The average U.S. rate for a 30-year fixed mortgage dipped below 3% this week as mortgage investors bet that an inflation spike would be temporary.
An index that measures signed contracts to buy homes reversed a 4% decline in April and posted its strongest May performance since 2005, the National Association of Realtors said.