In a week practically devoid of economic news, mortgage rates trended higher last week amid falling oil prices and surprise strength in Holiday Season spending.
Investors are jittery about the U.S. economy. Since it stopped raising the Fed Funds Rate this past summer, the Federal Reserve has repeatedly told markets that it is expecting an economic slowdown in 2007. Each week, however, brings more data to the forefront that suggests that the economy is still growing.
This week, there are several economic releases to keep an eye on, including Tuesday’s Producer Price Index (PPI) and Wednesday’s Consumer Price Index (CPI). Both will have a major influence over the direction of mortgage rates so expect volatility surrounding their respective releases.