The BIG 3 Indicators that drive mortgage rates
By Todd Abelson NMLS #180858 on .
Stay ahead of the rate game. Here are the BIG 3 Indicators that drive mortgage rates:
- Economic Growth – GDP is the widest measure of the economy and is the aggregated monetary value of ALL goods and services. The GDP report is released at 8:30 am EST on the last day of each quarter.
- Unemployment – also called Non-Farm Payroll, this represents the total number of US paid workers. Farm payroll is excluded because it is seasonal. The report is released at 8:30 am EST on the first Friday of each month.
- Inflation – the increase in the costs of goods and services over time. There are two measurements: CORE PCE, which measures the prices paid by consumers without including food and energy, and CORE CPI, which measures the change in prices over time for goods and services (again without food and energy). CORE PCE is released around the first business day of the month; CORE CPI is released around the middle of the month.
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