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FIRST TEAM’S WEEKLY MORTGAGE WATCH (May 14th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Last week saw mortgage rates rise slightly, with inflationary pressures and Retail Sales helping balance upward and downward pressure.
- While Retail Sales came in at a reasonable 0.4%, it was still a little short of expectations.
- Import and Export Prices Indices, along with the Producer Price Index, gave analysts some concern, as pressures continued to rise slightly more than expected.
- However, the core reading of the Consumer Price Index came in below expectations, tempering most fears regarding inflation.
- Even if upcoming economic data falls slightly short of expectations, we are still seeing predictions for a June rate increase from the Fed.
- As we move forward, any data that supports that increase will likely create more upward pressure on mortgage and other interest rates.
- Industrial Production is the biggest indicator due this week. If we see its manufacturing sub-component gain significant ground, then rates are likely to increase.
- However, the drama in D.C. may also impact rates, especially if we move closer the appointment of a special prosecutor.
Foreclosure Rate Continues to Fall
According to data released from ATTOM Data Solutions, foreclosure filings, which include default notices, scheduled auctions, and bank repossessions, numbered 34,085. This is the lowest level since November 2005. During the period from April 2005 to November 2007, foreclosure filings averaged 77,000 per month, as we headed into the financial crisis. Currently, on a national basis, one in every 1,723 housing units had some type of foreclosure filings in April.