At this point, making judgment to forecast what the market will deliver in reference to the best time to lock your interest rate has been a coin flip. This week and last week haven’t necessarily followed the rules of the “game”, so to speak. As economic reports continue to come out in the refinance seekers favor, the Stocks have taken their hits, but the bonds haven’t executed to the extent that we needed them to for rates to drop.
On the other hand, rates have held tight and stayed flat overall in the past week and we haven’t lost much ground. Getting that super low sub 5% rate in the 4.25%-4.5% range isn’t out of the question. The experts at www.Moving.com are still releasing the knowledge about upcoming economic reports that can give us all hope that rates may still lower. Here is the commentary from Moving.com that may service our needs for lower rates.
Three economic reports, and we hope they all work in our favor. Moving.com said, “There are three relevant reports on the agenda for tomorrow. The first is December’s Consumer Price Index (CPI). This is also one of the most important monthly reports that we see since it measures inflationary pressures at the consumer level of the economy…Weaker than expected readings should lead to bond improvements and lower mortgage rates tomorrow since this is the most important of the three.” This could mean that tomorrow rates open up nicely for us if the reports work in our favor, or at least by the end of the day tomorrow.
“December’s Industrial Production report is the second report to be posted tomorrow. It will be released at 9:15 AM ET and measures output at U.S. factories, mines and utilities.” When the stock market sees the reports at 9:15am, that should be enough time to rally the selling of stocks and buying of bonds in time to give the banks what they need to confidently make their decisions on our hopeful lower rates…assuming the reports work in that direction.
“The final report of the week is January’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment. This index measures consumer willingness to spend and can usually have enough of an impact on the financial markets to change mortgage rates.” This is the final report for tomorrow and cross your fingers.
If all reports do what we want them to, and rates fall, I’ll Blog about it and let you know what the outcome is. If there is not good news, I’ll say now, have a great weekend and better luck next week.