Mixed Economic Data Keeps Rates In Holding Period

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Peoples Home Equity informs readers about how mixed economic data kept mortgage rates in a narrow trading range on Friday.

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Be sure to pay attention to existing home sales on Wednesday, November 20th, as it can be a big market mover for mortgage rates.

Mortgage rates remained largely unchanged on Friday with mixed economic data being released. Peoples Home Equity is telling its clients that rates could move either direction.

Friday economic releases were largely mixed. The Empire State Manufacturing Index continued to its monthly decline since July, and posted its 2nd lowest reading of the year at -2.21. This report is not considered major because it’s based on data compiled from surveys of 200 executives in manufacturing companies residing in New York State. However, lenders still take notice because it is first hand barometer of the US economy. In addition, month-over-month industrial production posted a decline of -0.1% versus the consensus of 0.7%. On the positive side, annual industrial production was shown to remain with analyst expectations of 3.2%.

The mortgage market reacted rather narrowly to the data released as it was not directly related to the housing market. The 30-year fixed rate declined by 0.01 to 4.32% while the 15-year fixed rose 0.02 to 3.44%.

Many find current rates high, at least relative to last year. Based on the large move of 30 year rates climbing from 3.35% November 2012 to now, some expect rates to fall on any economic weakness shown from important data points next week. Be sure to pay attention to existing home sales on Wednesday, November 20th, as it can be a big market mover for mortgage rates. According to TradingEconomics.com, the market expects a slight decline of -3.02% in existing home sales versus the October figure.

Conversely rates could continue their climb if economic data continues to be strong. Strong reports would increasing the likelihood of the Federal Reserve taping its asset repurchase program. For this reason Peoples Home Equity encourages all prospective homebuyers to get approved for a loan today to be ready to lock in desired rate now, or be prepared to quickly take advantage of any decline in mortgage rates.

Be sure to contact a Peoples Home Equity loan officer today at: (855) 897-0300 to discuss home loan options under no obligation.

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