Mortgage rates were up and down last week.
Rates were much improved on Monday and Tuesday, much worse on Wednesday and Thursday, and idle for most of Friday.
Overall, mortgage rates improved slightly, but don’t expect the volatility to subside.
There is a ton of economic data to be reported this week. Each could cause mortgage rates to rise or fall:
- Monday : New Home Sales
- Tuesday : Consumer Confidence
- Wednesday : The Fed’s Beige Book
- Thursday : Initial Jobless Claims
- Friday : Personal Consumption Expenditures
If the data points to a better outlook for the economy, expect mortgage rates to rise. If data looks weak, rates should fall.
There’s another factor influencing rates this week, too, and that’s the U.S. Treasury’s plan to sell its most weekly debt in history. With 4 separate auctions, the government is selling $115 billion in Treasury notes. If the notes are in low demand, bond prices will fall, pushing up rates.
Indirectly, this should cause mortgage rates to rise. If demand is very weak, mortgage rates should rise by a lot.
Very busy week ahead. Expect mortgage rates to be on the move. As always, if you find a rate and payment you’re comfortable with I’d recommend locking. We do offer a free one time float down should rates improve during your loan process.
Posted by Scott Fowler. Scott is a Partner / Sr. Loan Officer with Horizon Financial. Scott can be reached toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org. Visit Scott’s website, www.ScottFowlerTeam.com.
