The Week in Review:
Last week was a mixed bag of economic news. There was reasonably good news for the housing market with Housing Starts being up for the 3rd consecutive month (a measure of confidence in the market) but we also learned the Unemployment Rate stayed the same when some expected it to slightly drop. Home loan rates started a march lower but reversed mid-week and ended just slightly higher than they started.
What to Expect:
The pull-back in rates in the middle of the week when the Fed is about to announce additional stimulus to keep rates low is a bit concerning. Not everyone feels that a new plan will actually accomplish the goal and it showed last week.
A formal announcement from the Fed should come at the November 3 meeting. Until then the markets will trade based on speculation. Also, several major corporations are set to announce 3rd quarter earnings. Good earnings reports, just like good economic data, can cause home loan rates to increase.
Next 7 Days: Expect a possible increase in rates as they follow through last weeks pull-back.
Next 30 to 90 days: Neutral as we await the Fed to announce their plans. This announcement could have a major impact on the future of home loan rates.