First Time Home Buyers
Mortgage markets improved again last week on softer-than-expected economic data, punctuated by Friday morning’s weak jobs report. Conforming mortgage rates in Illinois dropped on the news, making new, all-time lows.
Mortgage rates have been on an extended rally dating back to mid-April.
This week, there’s a lot of data and news due for release, the most influential to markets of which is the Federal Open Market Committee’s scheduled policy meeting.
8 times annually, the FOMC meets to discuss the nation’s monetary policy with respect to the current and projected U.S. economic conditions. Sometimes the FOMC takes action on the economy. Other times, it does not.
Either way, Fed meetings are market movers and it’s a gamble to float a mortgage rate ahead of an FOMC get-together.
There’s other’s stories to watch this week, too. Each has the ability to change mortgage rates.
- Tuesday : FOMC meeting; Consumer Confidence data
- Thursday : Jobless Claims
- Friday : Retail Sales; Consumer Price Index
It’s a busy week on Wall Street, to be sure, and rate shoppers would do well to pay attention. Not only can the FOMC meeting change mortgage rates for every product in every market, but it can also change the outlook for mortgage rates going forward.
Rates are at an all-time low and low rates can’t last forever. We’re in the middle of a Refi Boom today and, soon, the boom will be over.
If you haven’t spoken to a loan officer about refinancing your home, or locking a mortgage rate, your best time to make the call is prior to the FOMC’s Tuesday afternoon adjournment at 2:15 PM ET. Mortgage rates will get jumpy leading up to the meeting, and will most certainly be volatile afterward.
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