Mortgage markets improved last week, briefly touching their best levels in 3 months.
However, a rough Friday afternoon took away some of those gains.
Mortgage rates touched their lowest levels of the week Friday morning before tacking on an eighth-percent or more over the last 90 minutes of trading.
It’s the second straight week in which mortgage rates fell.
Last week was an odd week, of sorts, because economic data was lacking. Markets, therefore, improved mostly on momentum plays and a general shift from cash positions into bonds.
This week, data returns.
In addition to the Consumer and Producer Price Indices — “Cost of Living reports” for households and businesses, respectively — markets will also digest a Retail Sales report, Housing Starts for August, and 3 speeches from members of the Federal Reserve.
Each has the power to move markets.
Furthermore, Wall Street will be taking positions ahead of next week’s Federal Open Market Committee meeting. The Fed is expected to leave the Fed Funds Rate in its current range near 0.000 percent but don’t forget — the Fed doesn’t control mortgage rates.
Just because the Fed Funds Rate won’t change doesn’t mean mortgage rates won’t. Expect volatility Tuesday and Friday, and be wary of momentum. Mortgage rates tend to rise faster than they fall.
If you’ve been floating your mortgage rate over the past few weeks, it may be prudent to lock in Monday or Tuesday.