Mortgage Market Info – April 2014
6 years ago
Week of April 13, 2014
Mortgage rates moved downward last week as equity markets sold off. Most analysts predicted the beginning of a potential slow, upward trend for interest rates, rates dropped. While an uneven economy certainly creates an environment for rates to move downward, last week’s sell off in equity markets made it easy for rates to trend downward. Add in a Federal Reserve that continues to provide monetary accommodation, albeit a shrinking one, combined with a lack of inflationary pressures, and rates can and did move downward.
However, longer-term trends still show rates holding in a historically tight range since last summer. This week has a number of important economic data releases that could help push rates slightly lower, especially if equity markets continue to sell off. Both Retail Sales and Industrial Production data is due this week. If both of these come in under expectations, then rates will likely move lower. An unexpected increase in the CPI could surprise markets, and push rates back upward.