Mortgage interest continued to rise this week and ended the week at their highest level in 9 or 10 months. With the stock market continuing to rise investors have favored investing in the stock market which drains money from the bond market and continues to push interest rates higher. Currently there seems to be no end to this trend and the expectation is that mortgage interest rates will continue to rise in the current environment.
Next week the following events will occur and economic reports will be released which could impact mortgage interest rates:
- The Existing Home Sales report will be released on Wednesday;
- The New Home Sales report will be released on Thursday. Additionally there will be a European Central Bank meeting on Thursday which could impact interest rates;
- The results for 4th quarter GDP and the Durable Orders report will be released on Friday;
- There is a potential for the government to shut-down over the week-end. It is unclear what impact this would have on mortgage interest rates but it would have a significant impact on the mortgage industry and has the potential to delay mortgage loan approvals and ultimately delay closings.