Mortgage rates, although still very low, are trending higher this morning following stronger than expected Retail Sales data and concerns over the Fed ceasing QE3 sooner than expected. In addition, the stock markets have been reaching new highs which typically translates to higher mortgage rates as investors trade the safety of bonds (like mortgage backed securities) for the potentially higher return found in stocks. Currently mortgage rates are about 0.125% higher in rate than where they were on Friday evening.
Here are a few of the economic indicators scheduled to be released this week:
Monday, May 13: Retail Sales
Wednesday, May 15: Producer Price Index (PPI) and Empire State Index
Thursday, May 16: Consumer Price Index (CPI); Housing Starts; Initial Jobless Claims; Building Permits; and Philadelphia Fed Index
Friday, May 17: Consumer Sentiment (UoM)
When QE3 ends and the Fed discontinues their bond buying program which has been keeping mortgage rates artificially low, we will see mortgage rates trend higher. It’s estimated that rates will be closer to what non-conforming/jumbo rates currently are.
If you’re interested in a rate quote for your home located in Burien, Bothell, Bellingham or anywhere in Washington state, where I’m licensed, click here.