Despite inflation pressures showing up in the data last week, mortgage rates rode a healthy down-trend last week, according to Freddie Mac’s weekly rate survey of average rates. Sam Khater, chief economist explained it this way, “the economy is improving on the demand side and on the supply side, a variety of goods and materials remain scarce. As a result of this imbalance, pricing pressures are building and causing inflation to rise. Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.”
How does this affect you? Occasionally we will see these blips of improvement in rates and when it happens, it’s a great time for me to lock in your loan and save you money on interest. So, if you still haven’t refinanced in the last year, or if you are considering a purchase, let’s talk so that I can be on the lookout for great rates for you.
Remember, the overall bias in mortgage rates is moving higher as our economy improves, the impact of the pandemic lessens, and Americans get back to work and some semblance of normalcy.
As for what I’m watching this week…
There is very little high-impact economic data expected to be released. However, two important housing sales reports come out later in the week.
The first is on Thursday when we get a look at Existing Home Sales. Sales missed expectations significantly in February at a 6.220 million annual rate. And March’s expectations aren’t calling for any rebound at a consensus 6.205 million, largely due to inventory shortages in available homes.
Friday we get a look at New Home Sales. The consensus for March is a substantial rebound to 887,000 annual rate versus February’s much lower-than-expected 775,000.
As for what happens with rates, we will be watching closely the 10-year Treasury yield for hints on the next move for mortgage rates. It’s been rather steady this week so far and we’re watching as it trends lower, hopefully enough to urge mortgage rates even lower.
Reach out if you’d like me to be watching rates for you!