(Courtesy of Joe Massey at Castle & Cooke)
Mortgage rates began last week continuing to climb upward, but were pulled back by a concerted effort by Federal Reserve officials, and by modest economic data. Multiple Federal Reserve governors and regional bank presidents took to the media to attempt to calm the markets, claiming that the Fed has yet to change course, and is only planning to once economic realities warrant the change. That, combined with GDP being adjusted downward, helped draw mortgage rates downward.
This week could easily see mortgage rates moving either way. Monday starts with the ISM Manufacturing Index. If it spikes higher, indicating a surge in manufacturing activity, then rates could easily march higher as we head toward the holiday. However, if the ISM comes in near expectations, rates could continue to slowly drift downward. The one major key missing in our economic recovery is jobs. If Friday's employment report surprises with more than expected new jobs created, we could easily see mortgage rates spike upward as the week comes to an end.