Author: Anders Klintoe
The report seeks to highlight the major economic mortgage drivers along with CRT Performance and an origination quality index both derived from Freddie Mac's ACIS® & STACR® Programs.
The latest quarterly economic indicators reveal a robust performance in key areas. Gross Domestic Product ("GDP") has shown continued strength, expanding by 0.8% in the quarter and 3.4% on an annual basis. The unemployment rate remains low at 3.8%.
Personal income per capita has steadily risen, reaching an all-time high of $69.4K per household. The labor force participation continues to slowly expand and is now in line with the participation rate observed during 2015-2018.
The Consumer Price Index ("CPI") surprised on the upside during the first quarter leading to expectations of a June rate cut to be diminished. The change in expectations for rates in 2024 resulted in a quick upward movement in mortgage rates from a 6.8% prior to the CPI reading to approximately 7.0% after.
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