Mortgage rates are priced worse this morning.
Interest rates are struggling to find direction. Since the beginning of the year 30 year fixed rates have remained within a range of 4.75%-5.00%.
As I’ve stated repeatedly here on ‘rate update’ mortgage rates are likely to finish the year higher than they are today. So what will be the catalyst that will push rates higher? I believe it will be inflation & economic growth but the timing is tougher to predict.
In a speech given yesterday afternoon Fed Chairman Ben Bernanke downplayed recent inflationary pressure for food & energy. However, other Central Banks around the globe are reacting by tightening monetary policy. China raised its benchmark lending rate yesterday and the European Central Bank is widely expected to raise short-term rates on Thursday.
Later today we’ll get to see meeting minutes from the Fed’s last monetary policy meeting. There could be some interesting tidbits because there appears to be a growing divide amongst Fed officials about the timing of rate hikes.
Current outlook: neutral