This Week’s Mortgage Rate Forecasts
Home loan mortgage rates jumped the most that we’ve seen since last December. It was a rough week dominated by the Federal Reserve and some hotter-than-expected inflation data.
We saw the FOMC minutes move the market mid-week as the Fed expressed continued economic optimism. Separately, they made a surprise change to the discount rate increasing it to 0.75% from 0.50%
This Week’s Mortgage Rate Predictions
We return to normal this week with the news dominating the market movement. It makes sense to keep a keen eye on the results of the Treasury auctions, another $100B+ week, as well as Fed Chair Bernanke’s statements before Congress Wednesday and Thursday. This week’s calendar is littered with influential reports all week including:
- Case-Shiller Home Price Index
- New Home Sales
- FHFA Home Price Index
- Existing Home Sales
- Consumer Confidence
- Initial Jobless Claims
- Personal Consumption Expenditures
Mortgage rates are at a crossroads where they might tick ever so slightly lower, but they’ll eventually move much higher. In order to get the best rate on your home loan approval, it is best to start soon.
There is very little to suggest that rates are going lower and there is a lot to suggest that rates are going higher. When they do, it is very unlikely that we’ll see rates this low again anytime soon.
The economy is definitely improving and there is no need for the Fed to continue to spend so much money to keep rates this low.
If you want to check back on this week’s mortgage rate predictions, it should be an interesting week. Expect changes to Chicago mortgage rates with a significantly better chance of higher rates rather than lower rates.
