Mortgage Market Update
Mortgage Market Update- May 20, 2013
This past week was especially depressing for those who didn’t lock in their interest rates last week. Unfortunately, this week may not be much better. In addition to a slowly improving economy, there have been rumblings that the Fed may discontinue their quantitative easing (QE) program that is currently keeping interest rates lower. The only good news is that if this does occur, there is a slight chance that initially, rates may dip slightly in reaction to this since the stock market may tick lower causing a flight to safety.
What the upcoming week holds
This is a very slow week for economic data which may be just as well. On Wednesday, we may get confirmation as to how the Fed is thinking. This is when the minutes from the last Fed meeting will be released though it is widely anticipated they will show that many of the parties of the meeting feel it may be time to draw back the bond-purchasing program that has been such a success.
In other news this week, we may see some insight into what will happen with the economy as a whole later in the week. On Thursday, weekly jobless claims numbers will be released along with home sales and home pricing numbers. These numbers may factor into the overall bond movement this week. On Friday, Durable Goods numbers will be released too which may also help determine what will be coming in the months to come. It is important to keep in mind that in another month or so, we’ll see a seasonal slowdown as people head for vacations.
Current mortgage rates are the highest we’ve seen in a year and unfortunately for those who are considering buying or refinancing, this trend may continue. It is important to keep in mind that the more good news we have, the more pressure is put on bonds. While rates are still low, we shouldn’t expect them to drop again in the near future.
Whether you are considering refinancing or buying, you should consider Core Mortgage Financial today. While it may be easy to say there is not time like the present, this statement may be more true than you think. Since housing prices are showing continued signs of improvement and the overall economy appears to be improving, waiting to buy or refinance could cost you thousands of extra dollars a year if you wait too long.