The prior week showed a surprising display of inflation, in that for consumers, it was less than expected. This is giving way to some optimism that inflation is on the right track to being under control.
On the other end of the spectrum, for producers, inflation had shown to be slightly higher than expected. But the far higher impact of the two reports is the Consumer Price Index.
The Federal Reserve had still stuck to their stance as from the last FOMC opting to withhold any rate reduction decisions until late in the year, but the data coming in largely on a positive note has changed the previously highly negative outlooks into a neutral stance.
Consumer Price Index
The cost of consumer goods and services rose 0.3% in April, largely because of higher oil prices and housing costs, as inflation remained elevated in key parts of the economy. Yet the increase in the consumer price index last month fell below the 0.4% forecast of economists polled by The Wall Street Journal.
Producer Price Index
U.S. wholesale prices jumped 0.5% in April in another sign of sticky inflation. Economists polled by the Wall Street Journal had forecast a smaller 0.3% increase in the producer price index.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.10% with the current rate at 6.28%
- 30-Yr FRM rates are seeing a decrease by -0.07% with the current rate at 7.02%
MND Rate Index
- 30-Yr FHA rates are seeing no change for this week. Current rates at 6.62%
- 30-Yr VA rates are seeing no change for this week. Current rates at 6.64%
Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 214,000. The prior week landed at 208,000.
What’s Ahead
Extremely light week ahead after the inflation data releases. Heading up the most influential releases, the FOMC minutes will be highlighting potential plans for the future of rate decisions, among the regular job data releases.
Escrow might sound like a fancy term, but it’s not rocket science. Let’s break it down into simple terms. In simple terms, an escrow analysis is a review of your escrow account conducted by your mortgage lender. Think of it as a regular check-up for your escrow account. You might be wondering, what is an escrow account? An escrow account holds funds collected with your monthly mortgage payment to cover expenses like property taxes, homeowners insurance, and sometimes even mortgage insurance.
