Here we go into another week. Mortgage rates have been trending at some of the lowest levels they’ve been at all year and it’s possible we will see that pattern persist into next weekend. The big threat will be the inflation data at the end of the week. Read on to get all the details.
Where are mortgage rates going?
Inflation data in focus during slow week
There’s the potential for this week to be a slow one. We’re still in the summer vacation period, with many investors taking time off, and on top of that, there’s very little significant economic data out this week.
The biggest report will be the Consumer Prices Index on Friday. With a strong monthly jobs report last Friday, the focus turns to inflation data. CPI is supposed to get a slight boost, which, after a few lackluster readings will be much welcomed. Ahead of that report we’ll get PPI-FD on Thursday.
What does this mean for mortgage rates?
In general, the more inflation ticks up the more upward pressure we’ll see on mortgage rates. If the data comes out as analysts are expecting, we could see rates move up a little as we head into the weekend. The big threat to rising rates would be if the data outperforms expectations. Of course, any negativity would likely have the opposite effect, sending rates lower.
Right now, mortgage rates are unchanged from where they started the day. That trend could continue for a couple days, barring any unseen events.
Click here to get today’s latest mortgage rates (Aug. 7, 2017).
2017 Rate Hike Chances
The December question (whether or not the Fed will raise rates then) has been bouncing around for the past several months now. At best, it’s been a little over a 50% chance of happening.
Right now, the CME Group’s Fed Funds futures are putting the likelihood of a quarter point increase to the federal funds rate at a hair over 50%. We’re still far enough out from that meeting where anything could happen. It really all depends on if the labor market data holds steady and inflation data picks up.
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What does this mean for me?
Great time to lock a rate
Mortgage rates have been hanging around some of the lowest levels of the year for a couple weeks now. That means that the opportunity is there for borrowers to get a great deal on a purchase or refinance.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. Or, if you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
- St. Louis Fed President James Bullard at 11:45am
- Minneapolis Fed President Neel Kashkari at 1:25pm
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- JOLTS
Wednesday:
- Productivity and Costs
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- PPI-FD
- Fedspeak
Friday:
- Consumer Price Index
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2vHBeND
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