We saw major volatility last week, which resulted in lower mortgage rates. The week ended with mortgage rates a little bit higher than the rest of the week, so if you were lucky enough to catch the downswing, you took full advantage of the lowest rates. However, they are still lower than they have been for the last 3-4 weeks. It’s still a great time to lock your rate if you can. There are also many changes happening in the industry that may affect your ability to qualify. If you have not locked your program you will be subject to these changes. Please call me with any questions.
This week is fairly light in regards to economic data that can affect mortgage rates, so I am not expecting any huge drops or increases. If the stock market remains calm throughout this week rates will most likely stay flat. I will keep you posted throughout the week if I see anything “big” happening.
Here are the relevant reports for the week:
* MONDAY - The Institute for Supply Management (ISM) Services Index: This morning’s report was a little stronger than expected, but the difference between the forecasted reading and the actual reading was not significant.
* WEDNESDAY - 1st Quarter Productivity and Costs: This information is released by The Labor Department, which measures employee productivity in the workplace. If productivity is rising, then it will most likely help mortgage rates. A decrease could raise fears of inflation and mortgage rates may go up.
Forecast – 1.5% increase
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