Mortgages Blog

Finance Blogs » Mortgages » Economic calendar, week of May 17-21

Economic calendar, week of May 17-21

By Holden Lewis · Bankrate.com
Monday, May 17, 2010
Posted: 1 pm ET

For mortgages, the biggest items on this week's economic calendar happen Tuesday and Wednesday. Both days bring measurements of inflation. Unexpectedly high inflation could cause mortgage rates to rise.

Tuesday morning the Labor Department releases the April Producer Price Index, an indication of wholesale prices. Briefing.com's economic panel guesses that the report will say core PPI (wholesale prices excluding food and fuel) went up 0.1 percent in April, same as the increase in March. Wholesale price increases aren't necessarily passed on to consumers (at least, not immediately), so PPI gets some attention from the mortgage markets, but it's not as influential as the report on consumer prices.

Also on Tuesday morning, the Commerce Department comes out with its report on April housing starts and permits. Briefing.com's forecasters say housing starts were at an annual pace of 655,000 and permits were at an annual pace of 680,000. I'd bet the under on both.

On Wednesday, we get the Consumer Price Index for April. Briefing.com's consensus has the core CPI up 0.1 percent, up from unchanged in March. If CPI is substantially higher than that -- a 0.3 percent increase or more -- then one would expect mortgage rates to rise in reaction. I doubt that will happen. But if you're averse to risks, consider locking before Wednesday morning.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment