Fed Announcement To Swing Mortgage Rates
Mortgage rates came in at new record lows again this week, repeating what has become a common trend lately. As these low, low rates continue to highlight the fragile and extremely-slow economic growth, we have to wonder, how much lower can they go?
While few analysts believed we could continue to see low mortgage rates for much longer, anything is possible in this economic state. Although Leading Indicators (LEI) revealed a .5% increase, other reports from housing starts to new home sales dipped and are slowing. While these reports are not a surprise, continual shifts downward will create a downward pressure on rates, keeping them at record lows.
By far the biggest economic event to keep your eye on this week is the FOMC Policy Announcement from the Fed, as they meet for two days to discuss monetary policies. Most analysts are expecting a significant announcement, as it could easily swing the mortgage rates either way. Some programs that experts are predicting the Fed to launch, including a mix of investments the Fed holds, could push long and short-term rates in opposite directions. However, whatever the Fed announces, rates will most likely remain relatively low.