Mortgage Rates Rates for July 29th 2016 + Market Commentary

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Real Estate Agent with Tierra Antigua Realty SA624527000

Mortgage bond prices finished the week slightly higher which put downward pressure on rates.  Rates were flat the beginning of the week amid some stock weakness.  Stronger than expected data Tuesday caused rates to bump higher.  New home sales printed at 592K versus the expected 560K.  The strong housing data was countered by weaker than expected manufacturing data Wednesday morning.  Durable goods orders fell 4%. Economists expected orders to fall 1%.  The Fed kept rates unchanged as expected.  The odds of a Fed rate hike before the end of the year fell to around 28%.  Q2 GDP was 1.2%.  Economists expected the economy to grow at a 2.4% pace. Mortgage interest rates finished the week lower by approximately 3/8's of a discount point.

Fundamental Week

The abundance of fundamental data this next week provides a good opportunity for mortgages to improve.  If the data shows weakness in the economy with little or no inflationary pressures then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases.  However, if the data shows that the economy continues to rebound or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.

Mortgage interest rates remain historically favorable despite some recent volatility.  Now is a great time to take advantage of these low rates.

 

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