We’ve seen mortgage rates trend upward over the past two weeks coming off of all time historical lows. This has been fueled by a more clear and positive outlook for preventing Greece from defaulting and an increase in investor funds back into equities. This turn away from bonds is responsible for pushing most indices such as DOW and S&P 500 higher from the the levels of a few weeks ago, which has had a negative effect on mortgage rates.
This week the market will be watching data being released for the Consumer Price Index, Jobless Claims and Existing Home Sales. These events may cause movement of mortgage rates if the data is significantly better or worse than expectations.
Events Affecting Mortgage Rates Today
Earlier today, the Producer Price Index rose .8%, the biggest increase since Spring, a gain that was twice what the market expected. The market also watched Ben Bernanke’s words carefully as he spoke from a Boston Fed Meeting this afternoon. During his speech, Bernanke expressed that he believed the steps the Fed took during the crisis were successful. Bernanke also stated that he believed Fed’s transparency about its interest rate policy helped keep market calm.
Economic Calendar for Week of October 17, 2011
- Monday – Industrial Production
- Tuesday – Producer Price Index, Redbook, Housing Market Index, Bernanke Speaks
- Wednesday – Consumer Price Index, Housing Starts
- Thursday – Jobless Claims, Existing Home Sales, Philadelphia Fed Survey