Mortgage Market Commentary
Last week, mortgage rates drifted slightly downward with the threat of Fed rate increases once again pushed out into the future. Economic news was moderately positive last week. GDP, for the final quarter of 2015, was adjusted upward to 1.4%, leaving GDP at about 2.0% for all of last year. While this is not stellar, it still represents a reasonable growth trajectory, especially given all of the headwinds that the economy faces from challenges with our international trading partners. Existing Home Sales did pull back by more than seven percent last month, but much of this is being attributed to ongoing tight inventories. However, New Home Sales did manage to post a small increase.
This week is jam-packed with economic data. Markets will be very focused on Friday’s release of both the monthly employment data and the ISM Manufacturing Index. If the ISM moves back over 50.0, as expected, along with another strong month of jobs data, then we could see the week ending with mortgage rates trending upward. However, poor readings might not push rates downward much.
Loan Officer | NMLS #285372 Cell: 972-989-3707