Retail Sales
Retail sales increased 0.3% between January and February, much less than the 4.9% growth seen the month before, but only slightly less than the 0.4% economists had forecast, according to data from the Census Bureau. Compared to January, people shopped less online and spent more at restaurants, a sign the recent decline in COVID-19 cases made people feel safer to go out to eat, economists said. Monthly retail spending is still up 25% from pre-pandemic levels, but that figure is less impressive—only about 10%—when you account for today’s rampant inflation, according to economists at Oxford Economics. And with necessities like food, gas, and housing all taking a bigger bite out of household budgets, people will likely be forced to cut back on other kinds of spending in the months ahead, they said.
Mortgage Applications
The volume of mortgage applications fell 1.2% for the week through March 11 as rising mortgage rates continued to discourage refinancing, the Mortgage Bankers Association said.The association’s refinancing index dropped 3% for the week and has fallen 49% over the year as mortgage rates marched upward, increasing nearly a full percentage point in 12 months. The average rate for a 30-year fixed mortgage rose to 4.27% from 4.09% the week before, the MBA said, reaching its highest level since May 2019. Purchase applications, which are not as sensitive to mortgage rate movements, went the opposite way, edging up 1%.
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