Here we go with another week. Current mortgage rates have decreased slightly over the past couple of weeks and are holding at those levels today.
It’s not the busiest week for economic data but we will get some inflation data as well as a GDP reading, so the markets do have a couple opportunities to adjust. Read on for more details.
Where are mortgage rates going?
Mortgage rates hold lower to start the week
Despite the fact that the Federal Reserve is gearing up to increase the nation’s benchmark interest rate, the federal funds rate, by a quarter point in late September, mortgage rates have been holding steady recently–even decreasing slightly over the past two weeks.
The big news in the markets last week was the fact that we entered on Wednesday the longest bull run stock market history, beating out the previous run from 1990-2000.
While there are certainly multiple takes on what is the root cause of this run and what it means for the big picture, the majority of analysts agree that there does not appear to be an end in clear sight.
However, getting back to the nitty-gritty we’ve got a fairly moderate week of economic data ahead with inflation (PCE on Thursday) and GDP on Wednesday being the highlights for investors.
Right now, the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are heading) is basically flat at 2.81%.
It has moved lower by about twenty basis points over the last few weeks, and as noted earlier, mortgage rates themselves have declined, albeit by not as much.
Lock now before rates move even higher
Mortgage rates have improved these past couple of weeks but that trend is not expected to persist. If you are planning on buying a home or refinancing your current mortgage anytime soon, we strongly recommend that you take action sooner rather than later.
The longer you wait, the more likely it is that you will be locking in 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 cam in lower than expected in July, hitting a 0.13 vs the 0.38 consensus. That brings the 3-month moving average down to 0.05.
Dallas Fed Mfg Survey
The production index hit a 29.3 for August. The general activity index hit a 30.9.
Notable events this week:
- Chicago Fed National Activity Index
- Dallas Fed Mfg Survey
- International Trade in Goods
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- Richmond Fed Manufacturing Index
- State Street Investor Confidence Index
- Pending Home Sales Index
- EIA Petroleum Status Report
- Jobless Claims
- Personal Income and Outlays
- Chicago PMI
- Consumer Sentiment