Mortgage Rate News : Week of March 15, 2010

Mortgage Rate News : Week of March 15, 2010

March 15, 2010

For the first time this month, FHA and conventional mortgage rates rose last week. There was little economic news to cause direction either way.

Mortgage rates are far better than most experts have predicted right now. Weaker-than-expected economic data is one reason why. Lack of economic data may be another.

This week, however, economic data returns.

Monday : Industrial Production and Home Builder Index
Tuesday : Housing Starts and Building Permits
Wednesday: Consumer Confidence
Thursday : Producer Price Index and Initial Jobless Claims
Friday : Consumer Price Index and Continuing Jobless Claims

And, as if all that weren’t enough to alert you, the Federal Open Market Committee meets for a scheduled, 1-day event Tuesday.

The Federal Reserve is expected to vote to hold the Fed Funds Rate in its current target range near 0.000%, but that doesn’t mean mortgage rates won’t change. Markets are responsive to the FOMC’s post-meeting press release and any clear talk of economic strengthening should drive rates higher.

Wall Street is on the fence waiting for the economic data which will give it plenty to look at.

If you’re floating a mortgage rate, or waiting to lock, be prepared for wild swings in mortgage rates — especially leading up to Tuesday afternoon’s FOMC adjournment. The Fed adjourns at 2:15 PM.

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