After a week of churning, economic markets rates continue to be very steady. Early week media chatter suggesting the Fed was poised to push short-term interest rates higher before the end of the month melted rapidly as incoming data continued to show anemic U.S. economic growth. As things stand right now -- the Chicago Mercantile FedWatch tools currently show future traders are assigning only a 1.5-out-of-10 chance to the likelihood the Fed will vote to tighten monetary policy at the conclusion of their two-day meeting next Wednesday. As long as future traders believe the near-term likelihood of the Fed increasing the discount rate is below 30%, mortgage interest rates are not likely to move sharply higher.
The coming week’s economic calendar will be dominated by the Fed’s meeting scheduled for Tuesday and Wednesday followed by their release of the traditional post-meeting statement. In terms of economic data. The August Housing Starts and Building Permit figures will be released on Tuesday followed by Thursday’s release of the August Existing Home Sales report.
This blog comes from a weekly update I receive from Will Dukes of Summit Mortgage Corp.