Rates remained fairly steady last week. We hope, as many analysts do, that they remain steady this week as well. However, since rates are on shaky ground, any negative news could push them higher in a flash.
This week brings us the release of only two relevant economic reports in addition to the minutes from the last Federal Open Market Committee (FOMC) meeting and a Treasury auction. Both of the relevant reports are scheduled for release later in the week, so the most movement in rates may come the latter part of the week.
The final release of the week is the University of Michigan's Index of Consumer Sentiment at 9:45 AM ET Friday. Their consumer sentiment index will give us an indication of consumer confidence, which hints at consumers' willingness to spend. If confidence is rising, consumers are more apt to make large purchases. But, if they are growing more concerned of their personal financial situations, they probably will delay making that large purchase. This influences future consumer spending data and can have a moderate impact on the financial markets. Good news would be a decline from March's 69.5 reading.
Overall, I am proceeding into this week very cautiously. There are several variables that could make this week very quiet or quite rocky for mortgage shoppers. Tuesday's FOMC minutes could very well be a major market mover or a complete non-factor. Same goes for Thursday's auction. The truth is, the only day that I believe it is safe to say that we will see movement in rates is Friday as a result of the data being posted.
Visit me online so you can search current mortgage rates. And, as always, you can call me at (508) 471-4144 with any questions about mortgage rates and to discuss your best loan options.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB