Mortgage Rate Update January 23, 2014

Mortgage rates are slightly better than they were at the beginning of the week but essentially they continue to oscillate in a .125% range as they have since the beginning of the month.

Mortgage rates are benefiting from a weak stock market and weak economic data this morning. US stocks are currently trading lower by about 1%.

This week’s jobless claims report showed a greater number of out of work individuals filing for benefits than was expected. In a separate report manufacturing activity was also reported to be slower than anticipated. Lastly, news of out China suggests their economy may be growing sluggish which could have carryover impacts on our economy.

At this point I don’t anticipate any significant moves until next week’s Fed meeting which will take place on January 28th-29th. Even though some of the economic data out recently has been weak, including December’s jobs report, the markets still expect the Fed to taper bond purchases by an additional $10 billion in February. Should the Fed alter course it could cause rates to shift but until then I expect we’re on the same path.

Current Outlook: neutral