After opening the year with mixed news about employment, the second week of January brought even more insight into the health of the nascent economic recovery. For several months, traders have worried about the potential rise in inflation that could be caused by the Federal Reserve’s Quantitative Easing program.
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Muted Inflation Helps Mortgage Rates Move Sideways
- Mortgage Rates Continue to Rise; Fed Announcement Due Tomorrow
Last week, the markets for mortgage-backed securities were absolutely dominated by irregular economic events. Monday morning, mortgage rates looked like they might start to stabilize, as Federal Reserve Chairman Ben Bernanke’s interview on 60 Minutes assured traders that neither inflation nor long-term rates would be allowed to rise too rapidly. By the end of the.. - Quantitative Easing is (Probably) Coming, but When, and How Much?
Both the Consumer Price Index and the Producer Price Index released last week showed that inflation is negligible in the US economy right now, putting further pressure on the Federal Reserve to take action to stimulate economic activity. The CPI showed 0.0% core inflation, while the PPI showed 0.1% core inflation, and while both figures.. - Quantitative Easing is (Probably) Coming, but When, and How Much?
Both the Consumer Price Index and the Producer Price Index released last week showed that inflation is negligible in the US economy right now, putting further pressure on the Federal Reserve to take action to stimulate economic activity. The CPI showed 0.0% core inflation, while the PPI showed 0.1% core inflation, and while both figures.. - Markets Look to Federal Reserve for Direction – More Quantitative Easing Coming?
There had been hopes that last week’s broader array of economic data might reveal some direction in the economy. Instead, the data was substantially mixed, leaving traders unsure of the direction of things to come. Because of this uncertainty, tomorrow’s meeting of the Federal Reserve Open Market Committee will be closely viewed to set the.. - Employment Situation Improves; Mortgage Pricing Turns
After a week that saw a few comments from Federal Reserve Chair Bernanke move mortgage pricing by 1/2 point in a single day, many mortgage originators and borrowers hoped for a quieter week. This was something of a tall order on a week in which so much employment data was scheduled to be reported. Instead,..