The Week in Review:
Volatility has moved back into the marketplace and as a result home loan rates are experiencing daily movement again. This past week rates decreased at the beginning of the week only to end the week .125 – .25% worse than they started.
What to Expect:
This week has an unusually low number of economic reports scheduled for release. Changes in home loan rates will be driven by economic news and events.
Home loan rates have hit a floor and are still near levels from mid-August. Each time rates attempt to move a leg lower, they turn back around quickly. To break below current levels, weâ€™ll need a catalyst. In a week with very little information to digest, we donâ€™t see it happening this week.
On Tuesday morning there were some stories related to the continued economic struggles in Europe. Home loan rates improved ever so slightly on the news. Poor economic news tends to cause home loan rates to decrease.
Next 7 days: Rates will vary daily but no significant fluctuation expected
Next 30 to 90 days: Neutral; no clear indication of direction