What’s Ahead For Mortgage Rates This Week – February 26th, 2024

A government holiday followed by an extremely light release schedule has led to a limited amount of data, with the FOMC Minutes being the only impactful report for the prior week. The Federal Reserve had stated they will continue to maintain their current stance in light of the most recent inflation data. With rates holding into the year, as a result, lending partners have started back tracking some of their recent rate cuts. Lastly, Unemployment Numbers are seen to be well within expectations. FOMC Minutes “Most” officials noted the risks of moving too quickly to cut rates and wanted to…
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What’s Ahead For Mortgage Rates This Week – February 20th, 2024

Last week's release of CPI and PPI resulted in slightly higher than expected inflation rates which led to speculation that the Federal Reserve's decision to cut rates will likely come much further in the year than anticipated. There was some suspicion that if inflation rates would continue to exceed predictions, it could result in another rate hike. Lending partners have responded in kind with the first significant increase in lending rates since the end of November. However, The Federal Reserve will likely maintain its current stance.  Other reports such as US Retail Sales are showing a drop, but this is…
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What’s Ahead For Mortgage Rates This Week – February 12th, 2024

This week is the release of Core CPI and PPI numbers for January. The only data release of note is the trade deficit and the usual unemployment reports for the prior week. The current trade deficit for the U.S. is operating precisely within expectations and correlating GDP numbers. This current week will provide further guidance for the Federal Reserve as the next release of inflation data is released. U.S. Trade Deficit The U.S. trade deficit rose slightly in December, but the annual gap still fell to the lowest level in three years and added to the economy's strong performance in…
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What’s Ahead For Mortgage Rates This Week – February 5th, 2024

The largest and most impactful financial data being released is as always the Federal Reserve rate decision. This time it fit well within the expectations across the broader market and lending partners, in that the Federal Reserve still remains to hold the current standing, and is showing push back on any potential rate cuts coming March when the next rate decision is planned.  Most of the economic indicators from last year and this month have added fuel to the speculation that the Federal Reserve has largely met their goals and there is a strong upside pending rate cuts.  The other…
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What’s Ahead For Mortgage Rates This Week – January 29th, 2024

It was an uneventful week for the data reports, as the majority of the interest waits for the Federal Reserve’s rate decision heading into the following week. One of the most notable reports is for New Home Sales, which had managed to greatly exceed the projections for the end of the year moving into January. It is an early sign that there is a surge in response to the week-to-week rate cuts we have been observing over the last two weeks. The second largest data reports come from the PCE Index and preliminary projections for the Q1 GDP statistics. It…
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Mortgage Rate Locks When and How to Secure a Favorable Rate

Rate locks play a crucial role in the mortgage application process, helping borrowers secure a favorable interest rate for their home loans. Here's an explanation of the importance of rate locks and when and how to secure the best rate: Interest Rate Protection: Mortgage rates are subject to market fluctuations and can change daily or even multiple times a day. Rate locks protect borrowers from potential rate increases during the loan processing period. Budgeting and Planning: Knowing the exact interest rate allows borrowers to budget more effectively and plan their finances with certainty. It prevents unexpected increases in monthly payments,…
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What’s Ahead For Mortgage Rates This Week – January 22nd, 2024

The following week of CPI and PPI reports are typically lighter, with this week showing the same trend. There are a number of interesting interim reports that are worth noting however, including the Federal Reserve’s Beige Book which indicates the labor market has been cooling across most of the country. Following up is the Consumer Sentiment Reports, which is an excellent indicator for how the average consumer feels about their buying power, reflecting on the current economic conditions. Slower inflation, cheaper gas and a healthy economy have boosted optimism. Lastly, retail sales reports showing activity in December. Consumer Sentiment Report…
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What’s Ahead For Mortgage Rates This Week – January 16th, 2024

With the release of the CPI and PPI we received a clearer picture of what’s ahead. With the inflation numbers for CPI (Consumer Price Index) arriving a bit warmer than expected, there was some speculation that it could cause some hesitation from the Federal Reserve on reducing rates for this year. We also were able to see the Year-over-Year CPI inflation rates with those as well coming in at slightly higher than expected. The projected outlook for the first quarter is likely that the Federal Reserve will hold its position and continue with maintaining interest rates as they have. Although…
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What’s Ahead For Mortgage Rates This Week – January 8th, 2024

With the first FOMC minutes of the year, it sets the tone of the potential moves the Federal Reserve will make, with them remaining firm in their current stance of not employing any rate cuts, however given the more recent end of year reports, there is a likelihood that rate cuts will start this year. The last change in rates was in July of last year. The second most important report also being the final PMI (Manufacturing) numbers, which has largely met expectations without any irregularities. S&P Global US Manufacturing PMIManufacturing PMI was revised lower to 47.9 in December 2023…
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What’s Ahead For Mortgage Rates This Week – January 2nd, 2024

With the New Year, the final week only featured the normal reports of Jobless Claims, S&P Shiller Home Price Index (YoY), and the Chicago Business Barometer. All of them will have limited impact compared to the GDP and the Inflation data reports that have already been released. S&P Shiller Home Price Index (YoY)For the ninth consecutive month, home prices in prominent U.S. metropolitan regions have surged, reaching an all-time high. This increase is attributed to an ongoing shortage of available homes for sale. In October, the S&P CoreLogic Case-Shiller 20-city house-price index, after seasonal adjustments, showed a 0.6% rise compared…
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