This weeks starts with mortgage rates near the all time lows reached a couple of weeks ago after a slight tick upwards last week. Markets were watching the European debt crisis last week and that concern is the focus today for many traders as the markets are watching to see if Greece can avoid default. If Greece cannot achieve a positive outcome, default would negatively affect other nations in the European Union, which are already dealing with their own financial and debt related crises.
FOMC Meeting Will Move Mortgage Rates
Tuesday marks the start of a two day FOMC (Federal Open Market Committee) meeting, which is expected to announce new stimulus for the US economy at its conclusion. The markets will be carefully watching the FOMC announcement and moving accordingly, expect volatility around any announcements made by the FOMC.
Existing Home Sales and Housing Starts Data
Other reports expected to move the market and mortgage rates this week are data being released for Existing Home Sales and Housing Starts. These reports may also contribute to mortgage rate volatility.
Economic Calendar for Week of September 19, 2011
- Monday – Housing Market Index
- Tuesday – FOMC Meeting Begins, Housing Starts
- Wednesday – Existing Home Sales, FOMC Meeting Announcement
- Thursday – Jobless Claims, Leading Indicators, FHFA House Price Index
- Friday – John Williams from the Fed Speaks
Mortgage Rate Locks and Market Volatility
This week will likely be very volatile. This means that if rates make a move up, it will be fast and decisive, which means you will not have time to lock in your rate once such a move has started. Since rates are right at all time record lows, now is the time to lock in your rate, to hold off is simply gambling, with much more to lose then gain. We can help you understand what loan is right for your needs based on your current financial profile and future goals.