Fed Unlikely to Change Interest Rates
Mortgage rates continue to wander in a fairly tight range, with signs of economic growth coupled with inflationary concerns balanced against international unrest and increasing oil prices. Retail sales posted a full one percent increase last month, with many categories experiencing increases.
The Federal Reserve meets this week to discuss monetary policy. While the Fed is unlikely to change interest rates, it faces a host of growing issues even as the US economy seems to be gaining some traction. From the disaster in Japan, to increasing oil prices, to middle east unrest, to debt strain in Europe, the Fed and financial markets will have plenty to consider this week. Mortgage rates are likely to benefit from the global turmoil, as money flows into the safe havens of US Treasuries. However, rates may experience some upward pressure if economic news continues to point to a firming domestic economy. With so many competing pressures, mortgage rates may simply continue to be constrained to a fairly limited range, unless something unexpected happens.