After a week bereft of any news of consequence to affect mortgage rates, today’s Commerce Department’s report on July Retail Sales came in unexpectedly flat and investors in today’s thinly traded mortgage market responded by pushing prices higher (lower rates!). In a separate report, the Labor Department released data that showed prices at farms and factories fell by 0.4% in July. It was the first decline in this measure of inflation pressure at the producer level since March, and the largest since September of 2015. The good news is that benign inflation readings and flat Retail Sales make it more difficult for the Fed to consider increasing the discount rate for the foreseeable future and that will help mortgage rates (as well as all those folks that have HELOCs, car loans, and credit card debt). The coming week’s economic calendar will be lightly populated and not expected to influence the current trend trajectory of mortgage interest rates one way or the other. When that is the case, look for mortgage rates to take their lead from the stock market and world events.
Warmest Regards,
Kevin Aizenshtat
Realtor