Mortgage Rate Update April 25, 2016

Mortgage rates are unchanged from the second half of last week.  As I wrote about last Thursday mortgage rates increased by ~.125% over the course of last week.

This week’s economic calendar is jam packed with significant releases that could impact mortgage rates.

On Tuesday the latest version of the S&P Case-Shiller home price index is due out.  Portland has led the nation in year-over-year home price appreciation the past couple months and it will be interesting to see if we maintain the top spot.

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The Fed will conduct its regularly scheduled two-day monetary policy meeting Tuesday-Wednesday.  It is not expected that the Fed will raise short-term rates at this meeting but their comments regarding timing for future rate hikes would be an important market mover.  As a reminder the Fed does not directly control mortgage rates.

Later in the week we gets readings on personal consumption expenditures (inflation), personal spending, and consumer sentiment.

From a technical perspective as long as the US 10-year treasury yield is at or below 1.90% we can float in the hopes that it moves lower.  If it moves decisively above this level we need to lock in.

Current Outlook: cautiously floating