Mortgage markets carved out a wide range last week, creating a mixed bag for mortgage rate shoppers.
Rates were much improved on Monday and Tuesday, much worse on Wednesday and Thursday, and idle for most of Friday.
Overall, mortgage rates improved slightly but don’t expect the volatility to subside.
There is a ton of economic data scheduled for release this week — at least one new data point per day, actually. Each could cause mortgage rates to rise or fall:
- Monday : New Home Sales
- Tuesday : Consumer Confidence
- Wednesday : The Fed’s Beige Book
- Thursday : Initial Jobless Claims
- Friday : Personal Consumption Expenditures
If the data points to a rosier outlook for the U.S. economy, expect that mortgage rates will rise. If data looks weak, rates should fall.
There’s another factor influencing rates this week, too, and that’s the U.S. Treasury’s plan to sell its most weekly debt in history. Across four separate auctions, the government is selling $115 billion in notes. If the notes are in low demand, bond prices will fall, pushing up rates.
Indirectly, this should cause mortgage rates to rise. If demand is very weak, mortgage rates should rise by a lot.
This week in mortgage markets is among the most eventful we’ve seen all year. Expect mortgage rates to be on the move.