Mortgage rates are unchanged from Monday. Mortgage rates have essentially been sideways since the end of October. Whenever interest rates remain in a tight range for a prolonged period of time we need to be on guard for a break out (for better or worse).
The economic calendar was is busy this week.
With regard to inflation the Producer Price Index (prices at the wholesale level of the economy) came in at +1.5% on a year-over-year basis and prices at the consumer level are up +1.7%. Both numbers are slightly higher than recent months (bad for mortgage rates) but still below the Fed’s intended target.
In housing news, the National Homebuilders Market Index was reported better than expected on Tuesday, building permits were higher than expected in a report released on Wednesday, and existing home sales were hotter than expected according to a report released earlier today.
We are still in a pattern where domestic economic news should be pressuring mortgage rates higher yet international conditions are helping rates to remain low.
Current Outlook: floating