Mortgage rates once again drifted aimlessly last week, with little solid data to push them either way. Housing news came in a somewhat mixed with Housing Starts slipping downward and Existing Home Sales pushing upward. The inventory of homes for sale continues to vex many buyers, but is certainly helping current homeowners, as prices continue to press upward. New weekly claims for unemployment hit a 43-year low. While this could be due to seasonal adjustments or holidays, it bears watching, as inflationary pressures historically tend to rise in a tight job market. This week is likely to be very focused on the Fed meeting. While there is almost zero probability of any change in interest rates, experts will be combing through the policy announcement and listening intently to the post-meeting remarks for any clues to insights into the Fed’s stance. If the Fed focuses on the recent strength of the housing and/or labor markets, at the expense of discussion regarding international economic challenges, then rates are almost certain to start trending upward.
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