Nothing is moving the needle on mortgage rates; continue to hold at current levels
It’s much ado about nothing as we have a lot of news but none of it making a significant impact on mortgage rates. Last week headline CPI, our key inflation measure ticked up again, but Turkey’s currency devaluation dwarfed all other economic news for the week. Trade wars escalating somewhat also keeping mortgage rates from increasing, despite otherwise good economic indicators including small business optimism at the 2nd highest level in 45 years.
Putting it into perspective, Turkey is not going to disrupt our economy, the country’s entire GDP is only the size of Netflix. It is more the systematic issue that has traders concerned and whether or not Turkey’s issue will cause a ripple effect. Will have to keep an eye on this as it develops.
What to watch for:
- 3rd quarter GDP forecast- watching for hints of the economic direction for the remainder of the year, heating up or cooling off?
No expectations of rates moving from current levels until we get a catalyst to get out of this range. In my opinion, mortgage rates won’t go up much more than where we are right now this year. We shall see…
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