Here we go with another week. The Federal Reserve announcement on Wednesday is the big even over the next few days so it’s important to keep an eye out for that. Overall, we think that mortgage rates will move slightly higher, so borrowers should take action soon. Read on for more details.
Where are mortgage rates going?
Fed Meeting in Focus
It’s a slow start to the week today with no significant economic data out of release. We will see the news-feed pick up as we move through the week, though, as the Federal Open Market Committee will convene for a two-day meeting starting on Tuesday.
The event will wrap up on Wednesday with a written statement at 2:00pm and a press conference with Fed Chair Jerome Powell at approximately 2:30pm.
Financial market participants are largely anticipating a quarter-point increase to the nation’s benchmark interest rate, the federal funds rate, bringing the target range up to 1.75%-2.00%.
Given this expectation, market participants have already priced in the change, so we aren’t expecting any major market reactions on Wednesday when the formal decision gets announced. In general, the Fed is projected to signal a calming message of gradual rate hikes.
It’s really a matter of what actually happens at this point. If the Fed comes out and does exactly what everyone thinks they will do, then we should get a fairly smooth day with rates making a little push higher, but no major swings.
However, all it takes is one word in the written statement or a slightly provocative remark from Fed Chair Powell during his Q & A to stir up some fuss in the markets.
If I had to bet on it, I would say that things will go as planned, but that certainly won’t stop me from tuning in to find out if there are any surprises.
Lock before rates rise
Mortgage rates have been fairly flat over the past couple of weeks, but we do anticipate that they will finish out the year higher than where they are now. For this reason, we strongly recommend that anyone looking to purchase a new home or refinance their current mortgage does so sooner rather than later.
Today’s economic data:
Notable events this week:
- FOMC Meeting Begins
- NFIB Small Business Optimism Index
- Consumer Price Index
- EIA Petroleum Status Report
- FOMC Meeting Announcement
- Jobless Claims
- Retail Sales Import and Export Prices
- Business Inventories
- Empire State Mfg Survey
- Industrial Production
- Consumer Sentiment
Filed Under: Current Mortgage Rates, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates, Rates
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