Weekly Mortgage Rate Update-09-12-2023
Mortgage rates ticked up slightly last week after the ISM Services report shot higher than expectations, pointing to a stronger economic outlook.
This report is key, while manufacturing has been on the decline, the services sector ( 2/3 of our economy) has held strong. There was a thought that perhaps the services sector would start to show a decline after some softening employment reports started to come in, but that was not the case. Also, the report showed prices paid on the rise- pointing to higher inflation. With oil prices on the rise too, we are going to be fighting the inflation battle for longer.
The breakout opportunity this week comes tomorrow with the CPI (Consumer Price Index) data, but expectations are that it will show higher inflation. Unless that is a miss, we won’t get better rates this week- barring some unscheduled event.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.