We’re almost halfway through the week and mortgage rates have yet to move out of a tight range. We do get the minutes from the Federal Open Market Committee’s meeting a few weeks back. Financial market participants will be tuned in and ready to act on any information about the 2018 rate hike path. Read on for more details.
Market Outlook 2.19.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat ahead of FOMC Minutes
We’re approaching the halfway point of the week and, as expected, mortgage rates have remained mostly flat. There’s been very little economic data out over the past few days, which has been a major factor in keeping rates on an even keel.
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That could potentially change today, though, with the release of the FOMC minutes from their meeting a few weeks ago. Investors will be tuned in for that release at 2:00pm to see if there are any clues about the Fed’s rate hike path in 2018.
Depending on who you talk to the Fed could raise the nation’s benchmark interest rate–the federal funds rate–anywhere from 2-4 times throughout the year.
The one thing that everyone does seem to agree on, however, is that the Fed is going to follow through with a quarter point increase to the federal funds rate next month.
That would bring the target range up to 1.50%-1.75%. With regards to today’s minutes, the big question for investors is what happens after the March meeting.
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Rate/Float Recommendation
Lock in a rate soon
Current mortgage rates are expected to rise throughout 2018. Given this expectation, we believe it makes sense for many borrowers to lock in a rate sooner rather than later.
Learn what you can do to get the best interest rate possible.
If you take a step back and consider that the 30-year fixed rate is expected to hit 5% at some point this year, current levels seem pretty appealing.
Today’s economic data:
Fedspeak
- Philadelphia Fed President Patrick Harker at 9:00am
- Minneapolis Fed President Neel Kashkari at 8:15pm
PMI Composite Flash
The PMI Composite Flash hit 55.9 for all three readings. This is a 27-month high that’s above both the prior reading and the consensus from analysts.
Existing Home Sales
Existing home sales for January came in at an annualized rate of 5.380 million. That’s a drop of 3.2% from the prior month, and a drop of 4.8% year over year.
FOMC Minutes
- The FOMC minutes will get released this afternoon at 2:00pm
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Notable events this week:
Monday:
- Markets Closed: President’s Day
Tuesday:
- Nothing
Wednesday:
- Fedspeak
- PMI Composite Flash
- Existing Home Sales
- FOMC Minutes
Thursday:
- Jobless Claims
- Fedspeak
- EIA Petroleum Status Report
Friday:
- Fedspeak
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from Total Mortgage Blog http://ift.tt/2on3Q8M
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