Last week was quite the roller coaster ride for markets as the 10-year Treasury bond yield rose, pushing mortgage rates slightly higher with it. Inflation concerns were the main factor. According to Freddie Mac’s weekly survey of average mortgage rates, the average rate for a 30-year mortgage rose just .03 percent as optimism about the economy, vaccination rates, and additional government stimulus on the way fueled inflation fears.
As for housing, the housing market sits on the cusp of what is expected to be a brisk spring homebuying season.
This week there were quite a few important events including a Fed Meeting, new housing data, and retail sales numbers. The bias in markets is currently pushing stocks and mortgage rates higher, although opportunities still abound for homebuyers to get in on historically favorable rates.
What moved markets & rates this week…
A very important 2-day Fed meeting took place Tuesday, adjourning on Wednesday afternoon.
Tuesday we got a look at the latest Retail Sales data. After far surpassing expectations in January, retail sales in February are expected to fell back 3 percent following January’s 5.3 percent surge.
As for housing data, home builder assessments in March are expected to remain extraordinarily strong, at 83 for the housing market index versus 84 in February which was higher than expected.
Fueled by low interest rates and strong demand for housing, residential construction has been climbing sharply. A 1.579 million annual pace is expected for February starts while permits, which have been soaring, are seen falling back slightly.
Have a great week and please reach out if you are interested in discussing your options before rates move any higher.