Have you started thinking about the holidays yet? Just thought I’d let you know Christmas is 64 days from today!
Now that you’re freaking out about that…you won’t even notice that mortgage rates crept a little higher last week as we saw a bit of a reversal of the trend of lower rates we’ve enjoyed over the past four weeks.
The average rates for both the 30-year and 15-year fixed rate mortgages rose, according to Freddie Mac’s weekly survey. Rates didn’t rise by much but technical market clues point to this trend hanging around for the short term.
The trend reversal is largely a response to what’s happening in Europe with Brexit and the end of the term for current European Central Bank’s Chairman Mario Draghi. European bond markets have been suffering due to these headlines, leading to an in-kind response in our markets, causing mortgage rates to trend a little higher.
What’s happening this week?
This week we’ve got a healthy dose of housing market reports to digest, beginning tomorrow. However the calendar is quite light on economic data, which may amplify the markets’ reactions to geo-political headlines and corporate earnings, which are underway.
As for the trend for rates, we’re watching the 10-year Treasury yield to hit 1.80 percent. At that level it could break a little higher, which may urge mortgage rates higher as well. We’ll keep you updated.
We kick off the week’s housing reports with tomorrow’s report on Existing Home Sales. Existing home sales extended recent gains in August, posting year-on-year growth of 2.6 percent for a two-year high. Continued improvement is not expected for September with the consensus at 5.45 million, down slightly from 5.49 million.
Numbers for September’s New Home Sales come out on Thursday. New home sales pivoted higher beginning in June and extending to August, lifting the 3-month average to a 12-year high. The consensus for September’s annual new home rate is 699,000 and only modestly below 713,000 in August.
Have a great week and if I can be of any help to you on your home financing journey, don’t hesitate to reach out.