Mortgage rates are still low and forecast to remain low for the foreseeable future. Last week mortgage rates improved as traders continued to discount the probability of either a June or July rate hike from the Federal Reserve. Fed Funds are currently showing a 0% probability of a rate hike in today’s FOMC meeting and less than a 16.0% chance of a rate hike in July.
With a rather light week in terms of economic data, this coming week will be focused on the FOMC decision today and news from the UK on Brexit. Today, the focus will not be on whether or not the FOMC raises rates, as it is a forgone conclusion that they will not, but rather on any sense of timing of a future rate hike. As always, expect the FOMC statement to be a bit vague, leaving them flexibility to adjust in the future.
Brexit will also continue to headline the markets, especially as long as polls show that the June 23 vote is too close to call.
Today's blog courtesy of Sarah Riley, Caliber Home Loans