Mortgage interest rates will be volatile this week - there is a lot going on that can affect rates quickly. The Federal Reserve Board met this week and issued their statement Wednesday afternoon. The Non-Farm Payrolls report comes out on Friday.
The first week of every month is always a little nerve wracking in the mortgage world. The employment numbers that come out the first Friday of every month can sway interest rates very quickly. Sometimes there is an immediate reaction, sometimes not - it depends on where the report comes in compared to what was expected. If numbers are a lot better than expected, interest rates can change quickly and by a lot! If numbers are worse than expected, rates may improve -but it all depends on the report and what economists read into the report.
With the Federal Reserve meeting, along with bond sales by the Treasury Dept, there is a lot going on. The GDP report was released this week and was stronger than expected. When the Federal Reserve meets, investors are always listening to the report after their meeting - they are looking for any additional clues to when the Fed may raise interest rates or any other news that can affect the mortgage market.
Some days we see a huge swing in rates and then we may see a correction the next day - it all depends on what the news is and what the reports say.
Right now people expect that we may see interest rates up around 5% by the end of the year. However that may change based on economic news and also other things going on in the world. Russia and Ukraine can affect our interest rates too.
If you are looking to buy or refinance you may want to talk to your lender about your interest rates and if you should lock in now or wait to see what happens. If nothing else, you will be aware of where rates are and what diferection they are moving.