Rates Increase on the Fed’s FOMC Announcement
Mortgage interest rates increased this past week on the Fed’s FOMC announcement. The Fed indicated that they believe that unemployment will continue to decline slowly and that the economic outlook is and has been improving. As a result, the Fed believes now that the end of the current quantitative easing will likely be mid-2014. They will likely begin tapering the quantitative easing soon as long as the economy continues to improve. If the economy stalls, though, the Fed will be ready to increase the quantitative easing. Economic data this past week was mostly stronger than expected. Data stronger than expected included the June New York Empire State Manufacturing Index, the June NAHB Housing Market Index, May Building Permits, May Existing Home Sales, and the June Philadelphia Fed Business Index. The Philadelphia Fed Business Index had its best reading since April of 2011. Economic data weaker than expected included May Housing Starts, weekly jobless claims, and May Leading Economic Indicators.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 14,756, down over 300 points on the week. Crude oil spot prices are currently at $93.87 per barrel, down about $4 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.
Next week look toward Tuesday’s Durable Goods Orders and New Home Sales, Wednesday’s final look at Q1 GDP, and Thursday’s Jobless Claims and Personal Income and Outlays as potential market moving events.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.5 to 4.625% with no points.
** Mortgage rates are subject to daily market fluctuations and can change without notice. Mortgage rates are also effected by down payment, occupancy, loan amount, credit score, lock period and property type.