Mortgage rates are very attractive. In fact, dating back 14 months mortgage rates have only been this low on two other occasions (October 30, 2013 & May 30, 2014). The question is: will they get better?
Over the weekend officials from Germany, France, Ukraine, and Russia met in what is being seen as a precursor to cease-fire talks. One of the reasons why US interest rates are currently low is because of a “flight-to-safety” being spurred by geopolitical tension.
The economic calendar the past two weeks has been fairly uneventful. That changes this week just as traders on Wall Street enter their traditional vacation season, which means we could see greater volatility in the financial markets through Labor Day.
Earlier today, the National Association of Home Builders released results for its latest monthly builder confidence survey. It showed confidence growing amongst builders which is a welcome sign for the housing market (we need inventory!).
Tomorrow we get the Consumer Price Index, on Wednesday we get minutes from the last Fed meeting, and on Thursday we see existing home sales. Last but not least, the annual meeting of Central Bankers from around the globe commences in Jackson Hole, Wyoming on Thursday which Janet Yellen and Mario Draghi scheduled to speak.
Current Outlook: near-term locking bias, long-term floating bias (30+ days)