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It was a quiet week for mortgage markets. The major economic data was right in line with expectations, and rates ended the week nearly unchanged.
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The uncertainty around the world caused by the coronavirus has not slowed US consumers. In January, retail sales rose 0.3% from December, the fourth straight month of solid gains, and were 4.4% higher than a year ago. Another report released this week which surveys how people feel about their economic prospects suggested that the strength may continue as Consumer Sentiment rose to the highest level since March 2018.
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The other major economic report released this week indicated that core inflation remained stable, as expected. The Consumer Price Index (CPI) is a widely followed monthly inflation report that looks at the price change for goods and services. In January, core CPI, which excludes the volatile food and energy components, was 2.3% higher than a year ago, the same annual rate of increase as last month.
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Twice a year, Fed Chair Powell delivers testimony to Congress and answers questions from lawmakers about Fed policy. There wasn't any notable new guidance in Powell's testimony this week and it caused little reaction. He emphasized that the Fed will be watching "carefully" for the effects of the coronavirus, but he repeated that it's still too soon to tell if the impact will be "material" for the US economy.
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Looking ahead, Housing Starts will be released on Tuesday. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. Existing Home Sales will be released on Friday. In addition, news about the coronavirus, the US elections, or the trade negotiations with China could have an influence. Mortgage markets will be closed on Monday in observance of Presidents Day.
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| Weekly Change |
| 10yr Treasury |
flat |
0.00 |
| Dow |
rose |
300 |
| NASDAQ |
rose |
200 |
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| Calendar |
| Wed |
2/19 |
Housing Starts |
| Wed |
2/19 |
PPI |
| Fri |
2/21 |
Existing Home Sales |
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All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.
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