The strong Jobs Report on Friday caused mortgage rates to trend higher. This morning rates are still at that level. Please keep in mind that although I talk about mortgage rates been higher – they’re still very low. However if you’ve been pricing mortgage rates over the last two months, you’ll notice that the price (discount) for the same rate you’ve been quoted, cost more.
Remember, mortgage rates are based on mortgage backed securities (bonds). When the DOW is performing well, investors will trade the safety of bonds for the potential higher return found with stocks. Positive economic data and inflation may also cause mortgage rates to trend higher.
Here are some of the economic indicators scheduled to be released this week that may impact mortgage rates:
Wednesday, March 13: Retail Sales
Thursday, March 14: Initial Jobless Claims and Producer Price Index (PPI)
Friday, March 15: Consumer Price Index (CPI), Empire State Index and Consumer Sentiment (UoM)
REMINDER: FHA mortgage insurance is increasing in just three more weeks. If you are considering an FHA refinance or you are buying a home in the near future, get your FHA case numbers prior to April 1, 2013 to avoid paying higher FHA mortgage insurance.