A recent article by the Financial Times suggested the Fed is considering allowing inflation to run higher than their target levels. If this is truly Chairman Powell's goal it is likely we will see long term rates (Mortgages included) move higher. The market already thinks that is a possibility with Mortgage Backed Securities lower this morning. (There is an inverse relationship between price and yield- Prices down equal rates up in the credit markets)
Last December we were rates were charging higher and we were seeing some 5's on 30yr fixed rates as we went into 2019. This year we were surprised by a full 1% drop to a 3yr low. This is a sign that the temporary break in interest rates may not last forever and higher rates may be on the horizon.
This week's Economic Calendar starts off lite until the end of the week with the employment report released Friday morning.
Call me for all your residential lending needs!
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,