First, what are the expectations of the Fed’s next move on Prime Rate?
Today around 1:15, the FOMC (Federal Open Market Committee) is meeting and the results are to help estimate their next position on adjusting the Prime Rate. Chances are, there won’t be much to expect and the disclosure of information won’t REALLY say much to make heads or tails of a right hike.
Moving.com said today, “Tomorrow morning brings us the release of December’s Durable Goods Orders. This data helps us measure manufacturing strength by tracking new orders at U.S. factories for products that are expected to last three or more years. The data often is quite volatile from month to month, but is currently expected to show a decline in orders of 2.0%. A larger than expected drop would be good news for bonds and mortgage rates.” If you decide to follow this, you could Google the terms “December Durable Goods” and see if the decline is more than 2.0%. If it is, that could be could news for rates. If it’s not, it should affect rates for the worse by much if at all unless it is much better than expected.
What to expect in mortgage interest rates by end of this week in relation to the stocks and bonds and economic reports…Lastly this week, the December New Home Sales Report is to be out, but it should have a major affect on rates either. On the other hand, if it IS worse than expected, that would couple with the rest of this weeks reports and hopefully more next week to continue building momentum for a bettering mortgage rate market.
Are you trying to decide to lock your loan or not?All signs right now would say to float, or hold off on locking and see what the end of the week brings. If you are finding a benefit in a refinance right now, my advice is to lock Friday or Monday assuming rates are worsened too badly by then and therefore cultivate your gains.