Born this week in 1945 iss one of the greatest financial planning minds in US history. This brilliant financial mind first appeared on late night TV spreading messages such as, “Don’t buy stuff you can’t afford”. OK, maybe Steve Martin is known more for his comedy but his memorable SNL skit still resonates for me.
Home loan rates improved modestly late last week thanks to economic turmoil in Turkey. After Turkish officials jailed a US pastor President Trump doubled trade tariffs against Turkey which caused panic in their financial system.
The Turkish Lira has depreciated rapidly and the financial markets grew concerned that the contagion would spread to other emerging economies. Uncertainty tends to help US interest rates.
It appears that conditions have stabilized and that panic will not spread but if that changes later this week we may see mortgage rates hit near-term lows.
The Week Ahead
The economic calendar features a couple notable events. On Wednesday we’ll get the latest reading on retails sales. Also on Wednesday we’ll see the Home builders confidence index. More telling may be Thursday’s release of new housing starts and building permits.
As long as Turkey’s woes remain contained I would expect home loan rates to give back the .125% improvement they experienced at the tale end of last week.
Current Outlook: locking