Tame Inflation, Rates Steady-Mortgage Rate Update for the Week of January 7, 2019

Tame Inflation, Rates Steady-Mortgage Rate Update for the Week of January 7, 2019
The government shutdown and trade negotiations with the US and China were a big influence on the financial markets this week. As news regarding the shutdown or a trade deal were released, the market would react. The important financial report released this week was a look at consumer inflation with the Consumer Price Index (CPI) report for December. Most news headlines highlighted inflation decreasing for the first time in nine months, this was the overall inflation reading and the drop was due to oil prices as gasoline decreased by 7.5% in December. The Core Inflation Rate is less volatile as it excludes food and energy costs. The Core Rate increased from November and on a year over year basis was unchanged at 2.2%. the Federal Reserve’s inflation target is 2%, so it is slightly over their target. The report did show inflation is not accelerating and that is great news for home loan rates. Mortgage rates this week were stable.

Housing News

CoreLogic released their Loan Performance Insights Report for October 2018. This report looks at loan default rates. The report showed delinquency rates remain at historic lows. Loans that are 30 days or more past due decreased from 5.1% in October of 2017 to 4.1%, while the other major categories of delinquencies remained stable.

Tame Inflation, Rates Steady-Mortgage Rate Update for the Week of January 7, 2019