The week in review:
Last week marked what I would consider the first poor week of Treasury auctions we have had in a while. We also found out that Retail Sales are coming in higher than expected. Both of these events caused home loan rates to increase for the second week in a row. Home loan rates ended the week up .125% to .25%.
What to expect:
The week ahead is packed with economic reports. The most important reports of the week will be those measuring inflation at the producer and consumer levels. The Fed also meets Tuesday and Wednesday of this week. While we don’t expect any changes to short-term rates, they most likely will be discussing exit strategies for the various stimulus plans in effect.
Expect home loan rates to move a leg higher should the Fed start sharing its exit plans with the world.
Breg-ometer:
Next 7 days: Higher trend likely to continue
Next 30 days: Volatile but still staying low
Next 90 days: The writing is on the wall, rates are moving up.