It’s a slow start to another week with the bond market closed in observance of Columbus Day. The week after the Monthly Jobs Report is historically quiet, but mortgage rates could adjust later on in the week as we get the FOMC Minutes and a few important inflation readings. Read on for more details.
Where are mortgage rates going?
Bond market closed – rates are flat
The stock market is open today but the bond market is closed in observance of Columbus Day.
Click here to get today’s latest mortgage rates (Oct. 9, 2017).
Mortgage backed securities typically adjust in a response to the yield on the 10-year Treasury note, so with the bond market closed and the 10-year yield not going anywhere, it should be a quiet day for mortgage rates.
Inflation Data This Week
Things could certainly pick up as the week progresses, with most of the attention turning to some important inflation readings, such as the Producer Prices, Consumer Prices, and Retail Sales reports.
While the Fed doesn’t seem to be hanging on the an uptick in inflation, as it was perceived as doing for much of the year, inflation data is still eventually going to have to move higher for the Fed to continue their gradual rate increase.
In general, the stronger the inflation data, the more upward pressure there will be on mortgage rates. Analysts are expecting a slight bump up in all three reports, with the most notable spike expected for Retail Sales, which had a particularly poor reading in August.
FOMC Minutes
Aside from inflation, financial market participants will also be looking at the FOMC Minutes from the Fed’s September meeting.
The minutes can offer some more insight into the thinking of Fed Officials and it will be interesting to see how the arguments unfolded about inflation, rate hikes, and the decision to begin the balance sheet reduction program.
Mortgage rates will respond most to what would be perceived as a Fed that is eager to continue raising the federal funds rate.
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What happens with mortgage rates this week is certainly not set in stone, with various scenarios capable of unfolding. However, it does seem unlikely that rates will stray too far in either direction.
Given that mortgage rates are still on the lower end of the spectrum for 2017, this is good news for anyone looking to purchase a home or refinance their current mortgage.
What does this mean for me?
Find out what your rate would be
Mortgage rates are still at low levels for 2017, making right now a great time to lock in a rate on a purchase or refinance. At the very least, it’s worth your time to find out what your custom rate would be.
It only takes a few minutes to do so, and can give you a more complete idea of what kind of deal you could get. With mortgage rates expected to rise over the coming weeks and months, it’s possible that those who act sooner rather than later will be better off.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
- Nothing
Notable events this week:
Monday:
- Nothing – Banks Closed for Columbus Day
Tuesday:
- Fedspeak
Wednesday:
- Fedspeak
- JOLTS
- FOMC Minutes
Thursday:
- Jobless Claims
- PPI-FD
- EIA Petroleum Status Report
- Fedspeak
Friday:
- Consumer Price Index
- Retail Sales
- Fedspeak
- Business Inventories
- Consumer Sentiment
from Total Mortgage Blog http://ift.tt/2xue8q2
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