This week the main economic news was a major selloff in the stock market. Normally a selloff like we saw this week would be positive for mortgage interest rates however this week mortgage rate only declined slightly. There are other factors and influences that are weighing on current mortgage interest rates including inflation data, the continued reduction in the holding bonds by Central Banks and the increasing budget deficit in the U.S, all of which are putting upward pressure on mortgage interest rates.
Next week the following economic data will be released and economic events will occur which may impact mortgage interest rates:
- The Retail Sales report will be released on Monday;
- The minutes from the September 26 Fed meeting will be released on Wednesday;
- The Housing Start report will be released on Wednesday; and
- The Existing Home Sales report will be released on Friday.