What’s the ‘why’ behind the recent drop in mortgage rates?
The recent drop in the national average for mortgage rates has generated a lot of attention. But why did such a significant change occur so quickly? The team at Forbes dives into this exact question. The key takeaway is that mortgage rates can be very sensitive to new economic data. When the recent inflation reports came out, the 10-year treasury bond reacted, and mortgage rates followed.
Forbes also points out that we only have one set of data points on inflation. The markets will need to see additional information before we know if this is a trend or just a single data point.
Why are traders turning their attention to December 13th?
According to Mortgage News Daily, the bond market is already focused on the next set of inflation data that comes out ahead of the next Federal Reserve meeting. Matthew Graham of Mortgage News Daily reports that, “In the bigger picture, traders wish they could hit the fast forward button to December 13th and 14th,” and “No one’s really sure what to do between now and then.”
We may have to wait almost a month to see the next set of data and understand how the Federal Reserve is going to react.
Are there any key dates this week?
The economic calendar for Thanksgiving week looks as follows:
Monday, November 21st
Chicago Fed national activity index
Tuesday, November 22nd
No announcement scheduled
Wednesday, November 23rd
Durable goods orders
Core capital equipment orders
Initial & continuing jobless claims
UMich consumer sentiment index & 5-year inflation expectations
New home sales data
FOMC minutes
Thursday, November 24th
Thanksgiving Day holiday
Friday, November 25th
No announcement scheduled
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
