Archive for May, 2016

Market Update | Mortgage Outlook

posted on May 17th, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends at a glance - May 2016Economic Data Fosters Rate Fade

Now in the valley between the last and the next Federal Reserve meeting, financial markets must study and react to new inbound data about the economy and inflation. As such, mortgage and other interest rates will be pushed and pulled, fully dependent upon both individual items and the collective tenor of the mass.

Provided the needle doesn’t run very hot for very long (a happenstance we’ve not seen in a good long while) nor show the kind of weakness that could point to deflation or even an economic downturn, interest rates can really only run in a range, at times tending to the bottom of it, and at other times, more toward the top. Middling or mixed data will leave us, well, in the middle somewhere.

With no signal of acceleration, mortgage rates have settled back, edging closer to 2016 lows. To get them off the floor, we will need to see a sustained period of warmer data, which would in turn engender an increasing likelihood of a Fed move in June. At the moment, there’s little to support this, but there is still time before the data comes into focus.

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posted by Jeff DeChamplain // Leave A Comment

Jeff DeChamplain