Here we go with another week. Current mortgage rates have been rising steadily over the past month, a trend that we expect to persist for the foreseeable future.
Inflation data, overseas trade negotiations, and speaking engagements from the Federal Reserve should be the main market movers this week. Read on for more details.
Where are mortgage rates going?
The market continues to fear rising interest rates
Financial market participants are continuing to grapple with the fear that interest rates will surge in the coming weeks and months, putting stocks in a position to fall for the third consecutive day.
All of the major market indexes are in the red right now with the Dow Jones Industrial Average notably falling 106 points to start the week.
The bond market is closed today so we’ll have to wait until tomorrow to see where yields go, but in the past month we’ve already seen the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) continue to hit levels that haven’t been reached in well over five years.
Mortgage rates tend to move in the same direction as the 10-year yield, so we’ve seen rates move higher, albeit at a slower pace, over the past month. The general consensus is that mortgage rates will continue to move higher as we approach the end of the year.
Of course, the economic data still has to match up and we’ll get a couple key inflation readings this week which investors will be closely watching.
If those reports (consumer and producer prices) come in showing inflation rising at a steady pace, we’ll likely see bond yields and mortgage rates rise steadily as they’ve been doing.
Lock now before rates move even higher
Mortgage rates have been rising and are expected to continue doing so in the coming weeks and months. If you’re thinking about buying a home or refinancing your current mortgage, we strongly recommend that you do so sooner rather than later in order to lock in the lowest rate possible.
Today’s economic data:
Notable events this week:
- NFIB Small Business Optimism Index
- Atlanta Fed Business Inflation Expectations
- 10-Yr Note Auction
- Jobless Claims
- EIA Petroleum Status Report
- Import and Export Prices
- Consumer Sentiment