Market update
Should you lock or Float this week? Here is this week's news:
The FED Begins its FOMC meeting this Tuesday and we should have the outcome of that meeting about 2pm on Wednesday. In addition to the FED meeting we have a slew of reports on New and Existing Home Sales, Consumer Confidence, 2 Treasury Auctions, ending the week with Personal income and Personal Consumption Expenditure.
The "biggie" of the week will be the FOMC meeting and the statement that is released on Wednesday. The market will make an attempt to read between the lines of the FED comments to determine if there is a chance of a FED move in August. The FED will have to be cautious of the language they use so the market does not take things the wrong way. They have always been famous for "FED Speak" that seems to talk in circles.
There is almost a 0% chance that the FED will move this week so any move in the market will be based on the post meeting statement. The FED's comments will have to balance the risk of a continued recession with the fear of Inflation (inflation being the biggest enemy of interest rates). If the FED is successful at this balance of being vigilant on the inflation front without any hinting of a rate hike in August we will likely see Mortgage rates stay steady. BUT... (There is always a "but" isn't there?), If the market see the statement as hinting that there is one or more rate hikes coming this year, LOOK OUT, rates will move higher before the end of the week
This is likely to be a bumpy week for rates with the extra supply in the market of 2 auctions a slew of data and the FOMC meeting. It is probably wise to lock in your rate to be safe if you are closing in the next few weeks.
Rob
Robert Rauf
(732)740-0175
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