The week in review:
As expected, reports indicate that inflation is in check. Price-cutting is everywhere right now … from the gas pump to your favorite retailer. In fact, minutes from the Fed’s last meeting indicate they are more concerned about deflation than inflation. This news bodes well for home loan rates. Last week home loan rates decreased about .125%.
What to expect:
We are going to get several important economic reports to digest before the Thanksgiving holiday. The most important is Wednesday’s Personal Consumption Expenditure report which provides another gauge on inflation. Once again, low inflation = lower mortgage rates. If talk of deflation continues, it is smart for investors to put money into investments offering fixed returns, like US Treasuries and mortgage-backed securities. Such investment would only help home loan rates continue lower.
Next 7 days: Slightly lower
Next 30 – 90 days: Chance for rates to get better