Mortgage Rate Update October 13, 2015

Mortgage rates are unchanged to start the week.  The bond market was closed yesterday in recognition of Columbus Day.  Stocks did trade on Monday but were mostly flat.

Global influences continue to support a low interest rate environment here in the US.  A report out of China today showed that both imports and exports decreased in the world’s 2nd largest economy.  In Germany a survey of sentiment dropped substantially potentially signalling continued weakness in the Eurozone.  Bad news for the global economy tends to drive rates lower here at home.

Global weakness continues to support low rates in the US.
Global weakness continues to support low rates in the US.

The economic calendar here in the US is fairly busy this week.  On Wednesday we’ll get the Producer Price Index and Retail Sales, on Thursday we’ll get the latest reading on the Consumer Price Index, and on Friday consumer sentiment and industrial production.  As we know inflation is a hot topic because it’s the missing ingredient for the Fed to begin raising short-term rates.

From a technical perspective interest rates look like they could improve modestly although we can’t lose sight of the fact that we’re presently at 2015 low levels.  I will switch to a floating bias.

Current Outlook: floating bias

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.