Here we go with yet another week. There will be a lot to talk about over the next few days as the Federal Reserve’s Federal Open Market Committee meets on Tuesday and Wednesday to discuss the nation’s monetary policy path.
There are also a handful of other economic reports out that could impact mortgage rates. Read on for more details.
Where are mortgage rates going?
All eyes on the Federal Reserve
The FOMC meeting kicks off tomorrow and will wrap up on Wednesday afternoon at 2pm with a written statement and a press conference with Fed Chair Jerome Powell.
Financial market participants are widely anticipating the Fed to follow through with a quarter-point increase to the nation’s benchmark interest rate–the federal funds rate–bringing the target range up to 2.00%-2.25%.
This would be the eighth such increase since of the current cycle. While mortgage rates are not directly tied to the federal funds rate, they do tend to move in the same direction so it’s likely that rates will move higher.
With the rate hike on Wednesday having been close to guaranteed for quite some time now, the more important story will actually be the words that the the Fed uses in its written statement, as well as the answers that Powell gives to reporters during his press conference.
Investors want to know what the Fed is planning on doing in the coming months and will be closely watching for any clues that might appear. Notably, investors will be looking for signs that the Fed is on track for another increase this year, most likely in December.
Lock now before rates move even higher
Mortgage rates have been on the rise the past few weeks and that trend is expected to continue over the coming months. If you’re on the market for a new home or to refinance your current mortgage, we strongly recommend that you lock in a rate sooner rather than later.
The longer you wait, the more likely it is that you’ll wind up getting a higher rate and paying more in interest over the life of the loan.
Today’s economic data:
Chicago Fed National Activity Index
The Chicago Fed National Activity Index came in at a 0.18 for August. That puts the three month average at 0.24.
Dallas Fed Mfg Survey
The Production Index hit a 23.3 in September. The General Activity Index hit a 28.1.
Notable events this week:
- Chicago Fed National Activity Index
- Dallas Fed Mfg Survey
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- FHFA House Price Index
- Consumer Confidence
- Richmond Fed Manufacturing Index
- New Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Announcement/Press Conference
- Durable Goods Orders
- International Trade in Goods
- Jobless Claims
- Personal Income and Outlays
- Chicago PMI Consumer Sentiment