Mortgage update for March 4th 2019
Mortgage rates are starting to feel a little pressure upward after really no movement since the beginning of the year. This is a key week with a lot of economic news being released. Last week we received the release of the GDP for 4th quarter that showed growth at 2.6%, which is higher than the expectations of 2.3%. This means the average GDP for 2018 of 3.1%, the best since 2005. Also, manufacturing reports show continued expansion leading to the conclusion that there doesn’t seem to be a recession on the horizon for 2019. These type of good economic indicators typically pressure rates higher, but we also have a lot of money flowing into US treasuries from foreign investors that are keeping us protected somewhat from much higher rates.
What to watch for this week
- Friday payroll reports for February released- wage inflation could cause the Fed to consider another rate hike in 2019 putting more pressure on mortgage rates to increase.
- China/US trade talks take the main stage- reduction in tariffs will pressure rates higher.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.