Inflation metrics come in lower than expected
New inflation metrics were released on Thursday, and they showed that the core personal consumption expenditures price index rose 0.2% in October. The small increase was slightly below the predicted result. The index has increased 5% year-over-year.
Personal income was up 0.7% for the month. That was almost double the 0.4% prediction. Spending was up 0.8%, inline with monthly predictions.
The report was viewed positively by most markets as it indicated that price increases might be stabilizing.
How did the mortgage market react to inflation data?
The national average for a 30-year, fixed rate mortgage ended the day at 6.29%.* The day over day drop has resulted in the national average for a 30-year, fixed-rate mortgage hitting the lowest level since mid-September.
December 1st was the best day for mortgage rate improvement since November 10th, and one of the best days of the year so far. Reasons cited for the sudden change were a positive response to Chairman Powell’s speech and stronger than expected bond buying as part of the month-end trading process.
Are renters finally catching a break?
After 18 months of watching rent rise, demand from renters is finally cooling off and landlords have been forced to tone down their pricing. Last year, average rents rose by 2.7% nationwide. However, in the past 3 months, the average cost to rent a home has dropped by 2.2%. This could indicate the start of a trend that could see growth in rent stop or reverse course in 2023. This has also come with an increase in vacancy rates from 4.1% to 5.7% over the past year.
* National average rates are provided for illustrative purposes and are not advertised rates from Guaranteed Rate.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
