There is a lot of activity on the horizon as we step into what could be a very hectic week. A monthly jobs report on Friday and an FOMC meeting on Tuesday and Wednesday are just a couple of the highlights that we’ll be dealing with over the next several days. With everything going on, it’s not unreasonable to expect mortgage rates to move around a little bit. Read on for more details.
Where are mortgage rates going?
Very busy week ahead – rates could jump around
There are some weeks when you look at the economic calendar and it feels like someone forgot to do the scheduling.
Then there are weeks such as this one when it seems as though the scheduler undertook some sort of challenge where they tried to cram as many events as they could into the week.
We have multiple economic reports out nearly every day that could influence the direction of mortgage rates. Of course, the biggest event of the week will likely be the Monthly Jobs Report for July on Friday morning.
That report is always one of the most closely watched pieces of economic data each month and there’s no reason to believe this time around will be different.
Analysts are predicting that 188,000 jobs will have been shown to be added to the U.S. economy. That’s a strong enough headline reading to put some upward pressure on mortgage rates.
Of course, investors will also be looking at average hourly earnings and the participation rate, both of which will need to be at healthy levels for market participants to remain confident in the labor market.
Lock now before move even higher
Mortgage rates could certainly fluctuate this week as the various reports get digested by financial market participants. It’s always hard to hang your hat on one outcome during weeks like this one, but if I had to bet, I’d say that mortgage rates will wind up at slightly higher levels on Friday afternoon than where they are now.
More importantly, they are poised to gradually rise in the long-term so most borrowers are going to be better off locking in a rate on a purchase or refinance sooner rather than later.
Today’s economic data:
Pending Home Sales Index
Pending home sales increased 0.9% in June. That’s a step in the right direction after several months of less than stellar readings.
Dallas Fed Mfg Survey
The production index hit a 29.4 in July. The general activity index hit 32.3.
Notable events this week:
- Pending Home Sales Index
- Dallas Fed Mfg Survey
- FOMC Meeting Begins
- Personal Income and Outlays
- Employment Cost Index
- S&P Corelogic Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
- ADP Employment Report
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- EIA Petroleum Status Report
- FOMC Meeting Ends
- Jobless Claims
- Employment Situation
- International Trade
- PMI Services Index
- ISM Non-Mfg Index