Market Watch: What’s Shaping Mortgage Rates This Week?
E3 Home Loans
E3 Home Loans CA
Published on April 18, 2023

Market Watch: What’s Shaping Mortgage Rates This Week?

Verify your mortgage eligibility (Dec 1st, 2023)

Mortgage rates have remained steady after a moderate level of volatility in the market yesterday, where the market worsened by -25 bps, potentially leading to an increase in mortgage rates or fees. The sentiment surrounding the Fed policy rate is getting away from us, meaning that markets are now expecting the Fed to hold rates steady after the next hike until at least September before implementing the first rate cut. If momentum continues in this direction, we could see rates creep higher.

However, rates haven’t yet significantly increased as long as markets think the Fed is done raising rates at this meeting. It is unlikely that we will see rates improve much from here unless we see markets react positively to the Fed meeting and press conference on May 3rd. There is still a good chance that rates can move lower over the next month with any kind of economic data that shows the economy is slowing or if we see any labor market weakening.

This week, three areas have the greatest ability to impact rates: the Fed, Overseas News, and Debt and Banking. The Fed’s Beige Book, prepared in advance of their next meeting, will be released this week, and their media blackout begins next week. Overseas, key economic releases from China, Great Britain, Canada, and Europe could impact rates. Our nation’s debt ceiling is once again front and center as we will get the tax receipts this week and know just how underwater we are as debt ceiling negotiations drag on.

Verify your mortgage eligibility (Dec 1st, 2023)

For the banking system, we will get many bank earnings reports and originations reports, and banks are requesting less borrowing from the Fed in a sign that things may have stabilized.

It’s essential to keep an eye on these factors as they could potentially lead to changes in mortgage rates over the next few weeks. As of now, rates are holding steady, but any significant changes in the aforementioned areas could lead to an increase in rates. We will continue to monitor these factors and keep you updated on any changes in the mortgage market.

Show me today's rates (Dec 1st, 2023)