Mortgage Rate Update April 14, 2014

Rate Update’ is back after a fantastic week off spent in Maui.  While on vacation mortgage rates improved from two weeks ago.

alohasMortgage rates have improved despite relatively healthy economic news.  Today, for example, monthly Retail Sales were reported stronger than expected.  Last week we saw lower than expected jobless claims and hotter than expected wholesale inflation figures.  Generally speaking good news for the economy is bad news for interest rates.

So why are rates improving in the face of unfriendly economic news?  There are a couple story-lines that are overshadowing the economic headwinds.

First, geopolitical uncertainty  in Ukraine is still influencing the markets.  Russia continues to pressure the Ukrainian government to allow sections of Ukraine greater political autonomy.  The fear of a physical conflict is what is driving rates lower.

Second, minutes released last week from the Fed’s most recent monetary policy meeting revealed that the Fed may be more dovish on its accommodative policy stance than previously thought.

From a technical perspective mortgage rates appear to be ripe for reversal.  I would recommend locking in.

Current Outlook: locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.