Mortgage Rates Flat Ahead of FOMC Minutes

After seeing our rates go up quickly in the first six weeks this year, we are now in a little bit of an impasse as we have been in a rather tight range for the past few days.  This afternoon, we do get the minutes from the FOMC a few weeks back.  The financial markets are waiting to see if the notes call for more rate increases than what has already been discussed, which might see a movement higher with rates.

Where Are Mortgage Rates Going?                     

>>> Rates are showing little movement ahead of FOMC Minutes

We did get one report this morning, the Existing Home Sales from the National Association of Realtors. The numbers came in weaker than expected, with the NAR reporting at 5.38 million sales. Analysts anticipated sales of 5.60 million. This is not an important report, but is favorable for mortgage rates, and we have had very little data to look at thus far this week.

With very little economic news to digest, mortgage rates have remained mostly flat. This could potentially change today, though, with the release of the FOMC minutes from their meeting a few weeks ago. Investors will be tuned in for that release at 1:00pm to see if there are any clues about the Fed’s rate hike path in 2018.

Depending on who you talk to the Fed could raise the nation’s benchmark interest rate - the federal funds rate - anywhere from 2-4 times throughout the year. The one thing that everyone does seem to agree on, however, is that the Fed is going to follow through with a quarter point increase to the federal funds rate next month.

That would bring the target range up to 1.50%-1.75%. With regards to today’s minutes, the big question for investors is what happens after the March meeting.

Rate/Float Recommendation           

>>> Lock now to avoid risk of rising rates

Mortgage rates have been steadily rising throughout 2018. If you want to avoid the risk of rising mortgage rates, your best bet is to lock in a rate now. In the current rate environment, opting to float could mean that you will get a higher mortgage rate down the road. If that is something you can stomach, then by all means do it, but just understand there is a clear risk involved. Remember – Pig Get Fat – Hogs Get Slaughtered!