Treasuries and mortgage bonds are lower this morning as the FOMC’s March meeting minutes showed policy makers are debating when to withdraw record economic stimulus. In turn, futures contracts show a 70 percent chance of a rate increase within a year.
Treasuries and mortgage bonds are lower ahead of the March ISM non-manufacturing report, which is expected to show a -0.2 point decline to 59.5. Last month, the +.3 point increase put the index at a 5.5 year high, signaling strong confidence in the non-manufacturing sectors of the economy. Also today, the Federal Open Market Committee meeting minutes will be released.
The market will be focusing on the Fed speakers and the European Central Bank meeting, along with the March ISM report and Federal Open Market Committee minutes. There are no economic releases scheduled for today.
While mortgage rates for 2010 averaged some of the lowest on record, rates for the 30-year fixed are now at their highest level in seven months.
As all good things must, one day these low mortgage rates will come to an end. Our chart will give you an idea of where rates are headed.
Freddie Mac reports average mortgage rates have risen for three weeks in a row in response to signs of economic recovery, while home prices continue to fall.
We created our Housing Market Infographic – showing the top winners and losers in the housing market pricing game. We show the top five areas of the country where home prices have fallen. But also the top five areas of the country where home prices have actually gone up.
Stocks jumped in reaction to positve economic news. Whenever the stock market goes up, mortgage rates do, too. Will this trend continue, marking the end of the historic mortgage rates we’ve experienced for the last several months?
Americans’ confidence in banks remains low says guest columnist Barbara Marquand from Money-Rates