Financial markets are feeling more confident that the Fed will not raise rates any time soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again. |
Financial markets are in limbo at the moment, waiting primarily on tomorrow's jobs report for an indication that the growth in the economy is sustainable, |
Financial markets currently are very inflation sensitive, putting upward pressure on mortgage rates, ... However, several economic indicators suggest that the economy isn't overheating and that inflation is relatively contained. |
Financial markets currently are very inflation sensitive, putting upward pressure on mortgage rates. However, several economic indicators suggest that the economy isn't overheating and that inflation is relatively contained. |
Financial markets paused this week, trying to decipher the December minutes ... which seemed to hint that the Fed might slow the pace of rate hikes in 2006. As a result, mortgage rates were little changed this week. |
Financial markets see inflation as being well managed by the Fed, and that allows long-term interest rates to remain low, with mortgage rates even falling a little more this week. |
Financial markets seem to have locked into this level of mortgage rates. There was very little movement either way this week. |
Financial markets, hedging against the potential build up in inflation, pushed mortgage rates higher last week. However, market indicators this week seemed to point to less of a threat of inflation, and that allowed rates to drift a little lower. |
Following the onset of the Iraqi conflict, financial markets seem to have an upward bias for mortgage rates. However, that's not to say that uncertainty has diminished in any large way, but that it has shifted to a different set of unknowns. |
For the past six months, 30-year fixed rate mortgage rates have hovered between 6.75 percent and 7.25 percent. We continue to see a very low mortgage rate environment, and this has played a key role in the high level of housing construction we have witnessed over the last two quarters. |
For the typical family, home equity accounts for the bulk of their wealth. |
Freddie Mac economists expect mortgage rates will fluctuate for the rest of the year, but shouldn't rise over six percent. And compared to last year's average of 6.5 percent, today's rates are still incredibly affordable. |
Freddie Mac's own economic forecast calls for a mild and gradual increase in 30-year fixed-rate mortgage rates to about 6 percent by the end of the year. Low mortgage rates will sustain a brisk housing market, leading to record home sales and single-family construction this year. |
Further, the Fed will release its policy statement next week, giving financial markets a better sense of what future actions the Fed may be contemplating. All of this will help determine where mortgage rates will be in the near future. |
give the market better insight into whether the underlying core of inflation has picked up. |