Mortgage rates are unchanged from the latter half of last week.
Inflation remains top of mind for market analysts. Inflation is important because it is the primary driver of long-term interest rates, including mortgages.
Earlier today the Fed’s preferred measure of inflation, called the Personal Consumption Expenditure price index, was released. Core inflation, which excludes volatile food and energy prices, was up 1.7% from a year earlier. This is the firmest inflation has been in the last couple years.
The economic calendar is busy this week. On Wednesday the Fed will deliver its monetary policy statement. It is not expected that they will hike rates at this meeting but their comments always have the ability to shape the markets. On Friday we get the all-important jobs report. The markets currently expect +175,000 new jobs.
From a technical perspective momentum is not our side. Although rates have stabilized from my last ‘rate update’ it still feels we’re seeing upward pressure.
Have a safe and happy halloween!
Current Outlook: locking bias