This week is packed with data that may drive mortgage rates higher or lower, including the Fed meeting which wraps up on Wednesday. It’s highly unlikely the Fed will make any changes to the Fed Funds Rate. Traders will be waiting for clues on when tapering may begin (it’s estimated will be pushed out to March 2014). Remember, mortgage interest rates are based on bonds (mortgage backed securities – MBS) and change throughout the day, just like stocks do. It’s not unusual to have bonds react opposite of the stock market as investors will often trade the safety of bonds for the potential return found with stocks (and the reverse is true).
Here are some of the economic indicators scheduled to be released this week:
- Monday, October 28: Pending Home Sales
- Tuesday, October 29: Producer Price Index (PPI); Retail Sales; Consumer Confidence
- Wednesday, October 30: ADP National Employment Report; Consumer Price Index; S&P/Case-Shiller Home Price Index; FOMC Meeting (the Fed)
- HAPPY HALLOWEEN! Thursday, October 31: Initial Jobless Claims; Chicago PMI
- Friday, November 1: ISM Index
Rates are still very low. If you or someone you know is interested in refinancing or buying a home anywhere in Washington state, I’m honored to help them with their mortgage needs.