Mortgage Rate Update May 23, 2016

Posted on by Evan in Rate Update

Mortgage rates are unchanged from the latter half of last week.

The media is still focused on last week’s release of the Federal Reserve meeting minutes in which the committee indicated that a rate hike as early as June was in play.  I still don’t believe the Fed will hike rates in June.  According to CME Group there is a 26.3% probability currently priced into the market.  If the Fed does hike in June it could actually help mortgage rates because the move would be anti-inflationary.

The financial markets are still focused on the Fed's next move.
The financial markets are still focused on the Fed’s next move.

Fed chairwoman Janet Yellen is scheduled to speak this Friday and her comments will be closely scrutinized.

The rest of the economic calendar for this week is fairly light.  The highlights include the FHFA housing price index, new home sales, and pending home sales.  Recent housing data has been healthy and I expect this trend to continue.

The technical trading patterns for mortgage rates are not favorable but also not too concerning.  I will shift a neutral stance.

Current Outlook: neutral

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