Mortgage note rates are better today compared to last week for most mortgage programs. We’ve held a floating position since April 18th and over that time frame rates have improved by .125%-.25%.
This week’s economic calendar is heavy with lots of important releases scheduled. This morning pending home sales were reported at the highest level in 3 years suggesting that the housing market is on solid footing. The Fed’s favorite gauge of inflation (Personal Consumption Expenditure index AKA “PCE”) showed that prices rose by only 1.0-1.1% over the past 12 months. This is well below the Fed’s target of 2% and gives monetary policy makers more flexibility in leaving quantitative easing (QE) in place.
Speaking of the Fed, they are set to meet for their regularly scheduled 2-day meeting tomorrow and Wednesday. We will be listening closely for any mention of the Fed’s plan to unwind QE moving forward.
Let’s not forget that this week employment week! This means the ADP payroll report Wednesday, weekly jobless claims Thursday, and then the all-important Bureau of Labor Statistics jobs report Friday. There is a lot to track this week.
With so much new economic data set to be released technical signals may not play a big role this week and that may be a good thing. From a technical perspective interest rates appear poised to reverse higher. Based on this fact I am going to recommend a locking position.
Current Outlook: locking