As a follow up from last week, our projections of rate increases largely due to strong employment numbers had come to fruition. Friday the 2nd came with a surge in mortgage rates and they have hovered around that area since then. Initial jobless claims are near 50 year lows! Basically, employment numbers cant get much better but they might stay this good for the near future.
The Fed is also meeting and will release their monetary policy statement Thursday afternoon. Although we are not expecting a rate hike, we are very interested in what they have to say about wages, inflation, and the pace of rate hikes moving forward. Mortgage bonds are higher ahead of the Fed announcement, but we are expecting a flat, but volatile week barring any Fed surprises. We will report more on the Fed meeting next week. Take great care of your clients! Make sure you are working with a mortgage professional who understands the markets!