It’s very busy week for financial markets here in the U.S. and abroad. There are several high-profile events set to take place, bringing with them opportunities for mortgage rates to adjust. We still think the smart move for many borrowers is to lock now, as rates seem to be on track to move much higher in the long-run. Read on for more details.
Where are mortgage rates going?
Extremely busy week ahead
Here we go with what could easily be the busiest news-week of the year thus far.
G20 Summit kicks off today
Today and tomorrow, economic leaders from twenty different nations will gather in Buenos Aires, Argentina to talk about a variety of financial issues.
Many of the reports out so far are hyping up the discussion around cryptocurrencies and how they are possibly contributing to an increase in money laundering and other illegal exploits.
There’s no direct relationship from the G20 to mortgage rates; however, with it being such a high profile political/economic event, there’s always the possibility for something to be said that will stir up the markets and impact the direction of current mortgage rates.
Federal Reserve decision on Wednesday
The main event for financial market participants in the U.S. this week is the Federal Open Market Committee (FOMC) announcement and subsequent press conference on Wednesday.
This meeting has been in the cross-hairs for investors for many weeks, now, as it’s widely anticipated that the FOMC will increase the nation’s benchmark interest rate–the federal funds rate–by a quarter of a point.
That will bring the target range up to 1.5% to 1.75%. One thing that we don’t know going into Wednesday is what kind of changes FOMC members will make to their rate hike outlook.
For a while there in February there was a steady stream of strong inflation readings that made it seem as though the Fed would have to take a more aggressive approach to rates, but then we’ve kind of seem a tempering to those expectations with weaker reports over the past few weeks.
Still, no one is entirely certain on what the Fed will say on Wednesday. What we do know, though, is that the more aggressive the Fed’s tone is on Wednesday, the more likely it is that mortgage rates will move higher.
On the other hand, if the Fed comes off as taking a cautious approach, rates would be more likely to stay flat or fall lower. It’s all going down on Wednesday afternoon starting at 2:00pm.
Durable Goods and New Home Sales on Friday
The most notable data releases in the U.S. are the Durable Goods and New Home Sales reports, due out early Friday morning. The key phrase for durable goods is “bounce back” as they’re expected to tick up 1.7% in February after a 3.7% drop in January.
New Home Sales are also expected to jump up from their prior reading. Positive economic data tends to push mortgage rates higher, so we could see an increase to rates as we approach the weekend if these reports meet their expectations.
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Rate/Float Recommendation
Lock now before rates push higher
Mortgage rates could certainly bounce around this week as the various headlines and reports come in. While it’s incredibly hard to hang your hat on one given outcome for rates over the next several days, we do still believe that the long-term trend for mortgage rates is for them to move higher.
Given this expectation, we recommend that borrowers keep an eye on current mortgage rates and try to lock in sooner rather than later. You can get started online or with a quick phone call to one of our mortgage specialists.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Fedspeak
- Atlanta Fed President Raphael Bostic
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Notable events this week:
Monday:
- Fedspeak
Tuesday:
- FOMC Meeting Begins
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Announcement and Press Conference
Thursday:
- Jobless Claims
- FHFA House Price Index
- PMI Composite Flash
Friday:
- Fedspeak
- Durable Goods
- New Home Sales
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from Total Mortgage Blog http://ift.tt/2GGY8qX
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