Mortgage rates continue to edge higher in the latest survey though still remain at 12-month lows in this low inflationary environment. Freddie Mac reports that the 30-year fixed-rate mortgage rose three basis points to 4.20% with an average 0.50 in points and fees.
Sam Khater, Freddie Mac’s chief economist, says, “Despite the recent rise in mortgage rates, both existing and new home sales continue to show strength – indicating the lagged effect of lower rates on housing demand. This, along with improved affordability, should push housing activity higher in the coming months.”
Next week is shaping up to be a big week for economic data that could impact the markets as well as mortgage rates. Inflation data, manufacturing, job growth numbers, housing and Consumer Confidence will all be released. In addition, Federal Reserve members will meet for the regularly scheduled two-day Federal Open Market Committee meeting which will kick off on Tuesday and ends Wednesday with the release of the monetary policy statement.