Mortgage rates are more or less unchanged from last Thursday’s ‘rate update’. As I wrote then mortgage rates have risen by ~.125% since the Fed’s monetary policy statement delivered on Wednesday of last week. Investors now assign a 50% chance that the Fed will increase short-term interest rates at the December meeting.
It’s hard to believe it’s November 2nd! A new month means a new all-important jobs report which is slated for Friday. Analysts will be watching this one closely as it may influence whether or not the Fed acts to hike rates in December. I will lay out my strategy headed into this report in Thursday’s ‘rate update’.
From now until then there is a scattering of other economic data points but I expect mortgage rates to remain relatively flat until the end of the week.
From a technical perspective interest rates appear vulnerable. The US 10-year treasury yield is trading right at an important technical level. If yields close above this level it would be a bad sign for mortgage rates and if they can retreat below it would be a positive sign.
Current Outlook: neutral