What’s Up Next For Mortgage Rates?

Although Florida mortgage rates fell again last week, speculation is already running rampant as to whether their decline is destined to continue.

The Federal Reserve board seemed to be out in full force in the past week, the Originator Times reports, though its most recent message was more than a little confusing. This, more than anything, caused rates to hold steady.

However, this week boasts some important economic releases, that might just shed some light as to how inflation is being perceived by the powers that be — and which Fed President is on track with their analysis. So what’s in store for Florida home loan rates this week?

The two important reports this week are the Retail Sales report due out on Thursday, and the Consumer Price Index (CPI) due on Friday. By and large, the Retail Sales report serves as a measurement of the consumers spending, while the CPI, or more notably, the Core CPI, is a measure of inflation in the marketplace. Inflationary pressure is generally bad for bonds and rates, which almost certainly results in hikes on Florida mortgage costs.

Additionally, it is also worth noting that several other Fed speakers are slated to give speeches and remarks this week. If it appears the voting members are leaning in a certain direction concerning future rate hikes, all bets are off and the market could turn volatile and fast.

The bottom line: Barring any unforeseen statements by the Fed Governors and barring any expected economic news later in the week, Florida home loan rates should remain relatively stable this week in anticipation of the next Fed meeting. After six straight weeks of drifting downward, look for little to no movement in rates come later this week.