Falling Inflation Abroad, Rising Job Openings: A Quick Look at Global Economy

Here's a quick snapshot of the economic indicators impacting mortgage markets over the past week.

While inflationary pressure remains high in the US, with the April's Core Personal Consumption Expenditures (PCE) Price Index up 4.7% year-on-year, it's a different story across the Atlantic. Europe is witnessing an encouraging slowdown in inflation. Germany and France reported declines in their consumer price inflation to annual rates of 5.7% and 6% respectively. As a result, the market has recalibrated expectations, reducing the likelihood of immediate rate hikes in Europe, while the odds for a US federal funds rate increase continue to mount.

In parallel, the US labor market continues to show strength. April's Job Openings and Labor Turnover Survey (JOLTS) report revealed a whopping 10.1 million job openings, a clear sign of a robust job market and a considerable increase from pre-pandemic levels.

Looking ahead, key events to watch include the debt ceiling votes, additional financial system indicators, and comments from Federal Reserve officials. Key economic reports due next week are the ISM Manufacturing Index and the much-anticipated monthly Employment Report, followed by the ISM Services Index.

As always, keep an eye on these indicators as they could sway market trends. #GlobalEconomy #Inflation #JobMarket #EconomicIndicators #MortgageMarkets