Mortgage rates are approximately .25% better from mid-September and are currently at the best levels of the year.
The minutes from the last Fed meeting were released yesterday and were more dovish than the markets were anticipating. Prior to the release the markets had been expecting the Fed to being raising short-term interest rates in the first half of 2015. However, the minutes revealed that Fed officials are concerned about the uneven pace of global economic growth and the recent strengthening of the US Dollar. A dovish Fed is good for mortgage rates in the near term but could be damaging in the long-term if inflation begins rise.
Geopolitical tension is also helping mortgage rates to remain low. The US has escalated airstrikes in parts of Syria where the Islamic State is expanding control. Anytime conflict intensifies around the globe investors tend to seek safety which helps US interest rates remain low.
All the significant economic reports have already been released this week so mortgage rates will likely respond to the stock market and/ or technical trading patterns until Monday. Mortgage rates have had a nice run since the middle of September and I am concerned the current rally may run out of steam. I will recommend locking.
Current Outlook: locking