Tomorrow, the fireworks begin. Or, continue, depending on your point of view.
After a span of several weeks in which mortgage rates have steadily increased, markets are gearing up for a heavy day of data that could confirm the worst fears of investors everywhere: the U.S. economy is not slowing down.
The Fed’s May meeting minutes showed that it is concerned about inflation, too.
Despite “more favorable” readings, inflation remained “uncomfortably high” and is following neither a downward trend, nor an upward trend.
Reported today, year-over-year inflation data is running at its highest rate in 16 years.
Overall, this makes it less likely that the Fed will lower the Fed Funds Rate rate in the near future.
If you are currently floating your interest rate, get in and get locked. Because there is already an upside bias on rates, it won’t take “hot” numbers to move interest rates higher — it will only take average numbers to do it.