Last week saw mortgage rates continuing to be constrained in a fairly tight range. Economic news was mostly positive, but continues to reveal an economy that is lackluster. Fourth quarter GDP was adjusted upward to 2.6%, as expected, but still was still 1.5% lower than the previous quarter. Consumer Confidence hit a six-year high. However, six years ago, in March, 2008, the recession and housing crash were well underway. While we should be thankful that the economy is growing, we continue to lack the upward momentum to drive the economy to its true potential. This week has some important economic data that certainly could push rates either way. The most important of this data is the Labor Department’s monthly Employment Report. Another small drop in the unemployment rate would likely be ignored. However, some analysts are predicting a spike in the number of new jobs created. If this happens, then mortgage rates are likely to rise. Any easing of the tension in the Crimea would also help create an environment for rates to begin trending upward.
Week of March 30, 2014
Last week saw mortgage rates continuing to be constrained in a fairly tight range. Economic news was mostly positive, but continues to reveal an economy that is lackluster. Fourth quarter GDP was adjusted upward to 2.6%, as expected, but still was still 1.5% lower than the previous quarter. Consumer Confidence hit a six-year high. However, six years ago, in March, 2008, the recession and housing crash were well underway. While we should be thankful that the economy is growing, we continue to lack the upward momentum to drive the economy to its true potential. This week has some important economic data that certainly could push rates either way. The most important of this data is the Labor Department’s monthly Employment Report. Another small drop in the unemployment rate would likely be ignored. However, some analysts are predicting a spike in the number of new jobs created. If this happens, then mortgage rates are likely to rise. Any easing of the tension in the Crimea would also help create an environment for rates to begin trending upward.