Author: Anders Klintoe
The executive summary of the quarterly report highlights the major economic mortgage drivers, as well as with credit risk transfer (CRT) performance and an origination quality index both derived from Freddie Mac’s ACIS® and STACR® programs.
The latest quarterly economic indicators reveal a robust performance in key areas. Gross domestic product (GDP) has shown continued strength, while the unemployment rate remains low. Personal income per capita has steadily risen, reaching an all-time high. While the labor force participation rate has recovered from its COVID-19 lows, it remains close to prior lows observed in 2015.
The Consumer Price Index (CPI), while generally aligning with market expectations, continues to surpass the Federal Reserve’s 2.0% target, implying a likelihood of extended elevated interest rates. The market is currently uncertain about the Federal Reserve’s stance on rate increases in 2023, with some speculating on a “wait and see” approach while other are calling for an additional 25 bps interest rate hike.
Reach out to Anders Klintoe for the full in-depth report.
