Mortgage Rates Flat Waiting For Inflation Data

Markets have opened up today with very little news to digest, so mortgage rates are remaining relatively flat. There are some Treasury Auctions this afternoon which could move the direction a bit, but that is relatively minute at this time.  We do have several chances for rates to move around this week as a string of inflation data is set to get released.

Where Are Mortgage Rates Going?                     

>>> Inflation data could impact rates this week

On Friday, we got an unusually strong monthly jobs report for February. Financial market participants welcomed the positive data, and moved more into stocks and out of government bonds. This caused the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, up to 2.90%. It’s inched down a little to 2.89%, but that’s a very minor decline.

Today should be a relatively calm day in the markets, as there is not much happening on the economic front other than a few Treasury Auctions. There is definitely the potential for some market turbulence later on in the week, though, as we have several important economic reports out.

First up is the February Consumer Price Index reading tomorrow morning. The one drawback in the monthly jobs report on Friday was the weaker than expected average hourly earnings reading. This puts some pressure on the CPI reading as investors look for signs of rising inflation. Analysts are calling for a rise of 0.2% from the previous month, so that is the baseline investors will be looking for. A reading above or below that mark will cause the greatest market reaction. If it comes in higher, we could see stocks and, subsequently, mortgage rates, go up. Vice versa, if it comes in low.

After that, we have got more inflation data on Wednesday with the Producer Prices reading and the Retail Sales report. There are a few reports out on Thursday as well but nothing too major.

That brings us to Friday, where we’ll wrap up the week with the Industrial Production report. If you’ve been following current mortgage rates at all, you know that they’ve been on the rise.

Last week rates rose in the Freddie Mac Primary Mortgage Market Survey for the ninth consecutive week. We have seen almost a half-point increase in rates, which is no small increase.  It is also not the end of the climb. According to many analysts, we will see the average rate on a 30-year fixed move another half-point by the time 2019 comes around. The ascent has not been as rapid in recent weeks, but rates have continued to move higher nonetheless.

Rate/Float Recommendation           

>>> Take action soon to try and get the best rate

With mortgage rates expected to continue rising throughout the year, the smart decision for many borrowers is to lock in a rate on a purchase or refinance sooner rather than later. The longer you wait, the greater the risk you’ll be paying more with a higher mortgage rate.