Tag Archive for ‘macroeconomics’

Implications Of FOMC Normalization Process For Mortgage Rates

In its statement, the Federal Open Markets Committee (FOMC) left its key interest rate unchanged at a range of 1.0 to 1.25 percent. As signaled in its last statement, the FOMC, beginning in October, will initiate the balance sheet normalization program. The contents of this program are described in the June 2017 Addendum to the Committee’s Policy Normalization Principles and… Read More ›

Inflation Accelerated in August

The Bureau of Labor Statistics (BLS) reported that its seasonally adjusted Consumer Price Index – Urban Consumer (CPI) rose by 0.4 percent over the month of August, a significant acceleration from the 0.1 percent month-over-month increase in July. Prices of energy commodities, gasoline in particular, rose by 6.1 percent over the month after treading flat in July. At the same… Read More ›

Strong Q2 GDP Growth Confirmed

The pace of growth in the nation’s economy over the second quarter of 2017 was stronger than originally believed. According to the Bureau of Economic Analysis within the U.S. Department of Commerce, real gross domestic product (GDP) is now estimated to have increased by a seasonally adjusted annual rate of 3.0 percent in the second quarter. The original or “advance”… Read More ›

Senior Loan Officer Survey As A Barometer of the Economy

Lending standards on business loans to large and medium-sized firms eased on net over the second quarter of 2017 according to the Federal Reserve Board’s Senior Loan Officer Opinion Survey. Historical evidence has shown that lending standards on business loans to these establishments is correlated with both the growth in the stock of business loans held by banks and with… Read More ›

Mortgage Rates on New Home Purchases Tick Up

Information provided by the Federal Housing Financing Agency indicates that mortgage rates on purchases of newly built homes ticked up by 3 basis points over June to 4.03 percent. However, at this level, rates remain below the 4.18 peak level recorded in February. Meanwhile, a more commonly used rate reported by Freddie Mac indicates that mortgage rates fell in June. Despite… Read More ›

Economy Grew At a Faster Pace in Q2

In the second quarter of 2017, the nation’s economy grew at a faster pace than in the first quarter. According to the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the second quarter of 2017. In the first quarter, GDP grew at an annual rate of 1.2 percent. The first… Read More ›

Second Look at GDP Growth in the First Quarter – A Little Better, But About the Same

The Bureau of Economic Analysis (BEA) released the second estimate of real GDP growth in the first quarter of 2017. Economic activity expanded at a 1.2% seasonally adjusted annual rate, an upward revision from the previous 0.7% estimate. This estimate is based on more complete data than was available for the “advance” estimate. Real GDP grew at a 2.1% rate… Read More ›

First Look at GDP Growth in the First Quarter – Investment Up (Except Inventories), Consumption Down

Economic activity slowed in the first quarter, GDP growth dropped to a 0.7% seasonally adjusted annual rate from a 2.1% rate in the fourth quarter. The main culprits in the slowdown were personal consumption expenditures (PCE) and inventory investment. The Bureau of Economic Analysis (BEA) released the “advance” estimate of real GDP growth in the first quarter of 2017. Despite… Read More ›