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Understanding the Mortgage
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Economic
Indicators that Affect
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10 Reasons a Loan Falls
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Refinancing
a Home
Often Government data can create havoc in the
financial and economic markets when it is released. It can affect everyday
items such as gas prices. It also affects interest rates. Below are some of
the items that can affect interest rates:
Construction
Spending
The construction spending report is broken down into three categories: residential,
non-residential, and public expenditures on new construction. The monthly
changes can be very large and very volatile. Trends over the last three months
are the most important.
Consumer Confidence
Surveys are conducted monthly to survey 5,000 households to discover the level
of consumer confidence. It helps to detect sudden shifts in consumption by
consumers. Experts consider an index change of at least five points should
be considered significant.
Consumer
Price Index - CPI
The Consumer Price Index is a measure of the prices of goods and services
purchased by the public. It calculates cost of living adjustments for different
Government programs. Experts sometimes believe inflation is overstated in
the CPI numbers--yet it remains the benchmark for inflation.
Employment Figures
Employment figures come from two different surveys: household
surveys of 60,000 homes produces the unemployment rate and the establishment
survey that surveys 375,000 businesses which dictates earnings, workweek,
etc. These two numbers combined make up the employment situation. These numbers
are considered the most timely and broad economic indicator released each
month.
