Mortgage rates are unchanged after worsening late last week.
It’s going to be a busy week in the financial markets. The economic calendar is jam packed with significant releases including personal income/ spending, the Personal Consumption Expenditure price index, and the all-important jobs report on Friday.
Not to mention two highly anticipated central bank meetings. The US Federal Reserve monetary policy meeting wraps up on Wednesday. With the US economy dragging and inflationary pressure low many analysts believe the Fed will embark on another round of quantitative easing. In fact, some experts believe the Fed will focus on buying up mortgage-backed bonds which very well could cause mortgage rates to create new all-time lows.
In addition, the European Central Bank (ECB) is scheduled to meet later this week. ECB President Mario Draghi signaled last week that the ECB may also ease monetary policy in Europe to help support ailing economies such as Spain. His announcement caused mortgage rates here in the US to worsen. However, Germany remains opposed to significant bond-buying measures so we’ll have to see what happens.
Current Outlook: neutral