Last week’s scheduled economic news included readings on monthly and year-over-year inflation and the University of Michigan’s preliminary reading on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
Consumer Price Index: Inflation Shows Signs of Slowing
Government readings on October inflation showed signs of stabilizing and even slowing. The Consumer Price Index for October showed month-to-month inflationary growth of 0.40 percent as compared to the expected reading of 0.60 percent and September’s reading of 0.40 percent growth. Year-over-year inflation rose by 7.70 percent as compared to the expected reading of 7.90 percent and September’s reading of 8.20 percent.
Month-to-month core inflation, which excludes volatile food and fuel sectors, rose 0.30 percent in October as compared to expectations of 0.50 percent growth and September’s reading of 0.60 percent growth. Year-over-year core inflation rose 6.30 percent; analysts expected year-over-year core inflationary growth of 6.50 percent. September’s year-over-year reading for core inflation was 6.60 percent. The Federal Reserve considers year-over-year inflation of two percent as normal.
Mortgage Rates, Jobless Claims Rise
Freddie Mac reported higher mortgage rates last week as rates for 30-year fixed-rate mortgages averaged 7.08 percent and 13 basis points higher than for the previous week. Rates for 15-year fixed-rate mortgages rose nine basis points and averaged 6.38 percent. Rates for 5/1 adjustable rate mortgages averaged 6.06 percent and 11 basis points higher than for the previous week. Discount points averaged 0.90 percent for 30-year fixed-rate mortgages and 1.00 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.20 percent
Initial jobless claims rose last week with 225,000 new claims filed as compared to 220,000 new claims expected and 218,000 first-time jobless claims filed. in the previous week. 1.49 million continuing jobless claims were reported, which matched the previous week’s reading.
The University of Michigan released its preliminary consumer sentiment survey for November with an index reading of 54.7. Analysts expected a reading of 59.5 for November; October’s reading was 59.9. Index readings over 50 indicate that most survey participants view current economic conditions as positive.
What’s Ahead
This week’s scheduled economic reporting includes readings on housing markets, sales of previously-owned homes, government reports on housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims will also be released.
U.S. military veterans have opportunities to enjoy some richly-deserved benefits in other aspects of their lives, including some special options for financing their homes. VA loans may give active military personnel, retired veterans, and sometimes surviving family members of veterans the ability to purchase homes that might not prove available to them through more conventional mortgage loans.
With the new year right around the corner, that leaves you with precious little time to get your finances in order. Let’s explore a few tips that will help you get a jump on improving your credit score before the end of the year.