The Consumer Sentiment Report was the sole important report to take place the prior week, keeping with the trend of the cooling-off period that happens the weeks following the CPI and PPI data releases.
Consumer sentiment this time around has come to be slightly below expectations and falling to a 6-month low, marking a great change in overall sentiment towards the clear trend in rising costs in goods and services. It is largely expected that the Federal Reserve, even with the recent improvement in data, will maintain its stance at holding rates at the current position until a later date this year.
Consumer Price Index
A monthly gauge of U.S. consumer sentiment fell to its lowest level in six months in May on expectations of higher inflation, according to a survey released Friday. The second of two readings of the consumer-sentiment index was 69.1 in May, a sharp decline from 77.2 in April, the University of Michigan said. The final reading was slightly higher than the initial estimate of 67.4.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.04% with the current rate at 6.24%
- 30-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 6.94%
MND Rate Index
- 30-Yr FHA rates are seeing an increase by 0.08% for this week. Current rates at 6.70%
- 30-Yr VA rates are seeing an increase by 0.08% for this week. Current rates at 6.72%
Jobless Claims
Initial Claims were reported to be 215,000 compared to the expected claims of 220,000. The prior week landed at 223,000.
What’s Ahead
Next week is the Federal Reserve’s preferred inflation metric PCE Index Prices, but the more impactful metric has largely always been the CPI and PPI reports. There will also be the release of the Chicago PMI report which will headline manufacturing data and the current state of the manufacturing industry. Tailing up the two major reports is the Federal Reserve’s beige book.
MAY
About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.