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FIRST TEAM’S WEEKLY MORTGAGE WATCH (February 12th, 2017) THIS WEEK HIGHLIGHTS THE FOLLOWING UPDATES:
- Mortgage rates continued to drift slowly downward last week, as they waited for clear economic signs or more details and action on future policies. As the week wound down, rates were spurred higher by talk of a future “phenomenal” tax cut plan, which drove stock markets higher. Investors shifted money out of bonds and treasuries which began to tug mortgage rates upward.
- Even with the upward pressure that stopped rates from continuing to drop, we may see rates moving downward this week. The Producer and Consumer Price Indexes are due, and neither is expected to rise much. More importantly, both Retail Sales and Industrial Production are predicted to show some deceleration from last month. If either swings negative, then rates are even more likely to move downward. Fed Chair Janet Yellen is also due to speak to Congress. If she continues to express an optimistic, yet guarded, belief that the US economy will continue to expand, we could see more odds shifting toward only two Fed rate increases this year. This would help pull mortgage rates downward.
Here Comes The Home Buying Horde?
A recent survey from Bankrate is raising eyebrows with its revelation that one in four US adults is considering buying a home in 2017. One thousand adults were surveyed and about 250 were considering buying. Extrapolating this to the whole US means a whopping 59 million buyers! Of course, what people plan and what people do is often very different. The one thing that many experts are taking away from this survey is that the industry may see significantly more sales this year.