Softer Numbers Ease Mortgage Rates

Mortgage rates have recovered some of the increases we saw from the past few days, but not as much as we would like to see.  We did get some important reporting today, but some softer than expected inflation numbers are keeping mortgage rates from moving out of the tight range that they have been all week. Tomorrow we will get more inflation data, bringing with it the possibility of a rate adjustment before we head into the weekend.

Where Are Mortgage Rates Going?                     

>>> Rates comes back slightly from yesterday’s increases

Usually during the second week of the month, the data that comes out is not as dramatic as the Jobs Report numbers during the first week.  Lately, we have been seeing some inflationary numbers that has continued the higher volatility levels the following week, but not this time.

There just has not been many significant economic reports out this week and the few reports that did get released were softer than anticipated and not much to talk about. Today’s Consumer Prices Index reading showed just that as it came in slightly below expectations. That means the inflation hawks will have to wait another day before they can rile up the troops with their talk of a quicker than expected tightening schedule from the Federal Reserve.

After looking over the latest numbers in the Freddie Mac Primary Mortgage Market Survey, it basically showed the same numbers we have seen in recent weeks. The report stated that “the minimal movement of mortgage rates during the past month reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation. As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.”

The 10-year Treasury is back down to 2.97% after pushing 3.00% yesterday.  The floor remains at 2.90%, and if we get there, we may see some movement, but we are pushing the ceiling lately at 3.04%, so do not anticipate any downturns in the very near future.

Rate/Float Recommendation           

>>> Lock now before rates move higher

Mortgage rates are staying in a tight range for now but could very well be on track to increase substantially by the time 2019 rolls around. At the very least, it is far more likely that mortgage rates will rise than fall in the coming weeks and months, so do not get caught with this little decrease ass a sign to float.

If you want to avoid the risk of locking too late, you should lock in your rate now. Despite what happens in the near-term, mortgage rates are still expected to move higher in the long run so locking in a rate sooner rather than later remains the smart decision for most borrowers. If you have any further questions, give us a call or visit our website at Call TheMoney Man.