Updated on November 13, 2018 10:20:15 AM EST
There is nothing of importance set for release today. We are seeing bonds react to yesterday’s stock selling. The rest of the week brings us only three pieces of economic data that likely will affect mortgage rates, but two of them are considered to be highly important. There also is a batch of Fed member speaking engagements, including one by Chairman Powell after hours Wednesday. These always have the potential to cause movement in the markets, particularly when there are few economic reports or other events to drive trading.
Octobers Consumer Price Index (CPI) will start this week’s activities at 8:30 AM ET tomorrow morning. This index measures inflationary pressures at the consumer level of the economy and is one of the most important reports the bond market sees each month. If it reveals stronger than expected readings, indicating that inflationary pressures are rising at the consumer level, the bond market will probably react negatively and cause mortgage rates to move higher. Analysts are expecting to see a 0.3% increase in the overall reading and a 0.2% increase in the core data. The core reading is the more important of the two because it excludes more volatile food and energy prices.
Overall, the most important day of the week is either tomorrow or Thursday as they have equally important economic releases (CPI and Retail Sales respectively. While this week likely will not be as active for mortgage rates as the past couple have been, there still is a decent chance of seeing multiple days with noticeable changes to mortgage rates. Therefore, it would be prudent to maintain contact with your mortgage professional if still floating an interest rate and closing in the near future.
©Mortgage Commentary 2018