Inflation nightmare returns as mortgage rates run for cover 👺🛢️📈
The Week Ahead
WEEK AHEAD 🗓️
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In case you missed it the multi-year lows for mortgage rates evaporated last week as oil prices skyrocketed above $90, bond prices tanked, and mortgage rates gave up an average 54-bps in price.
That’s an increase of $540 per $100k of loan amount or $2,700 on a $500k loan.
Tomorrow’s Rate Price Tracker will show just how much each rate changed, so stay tuned for the detailed breakdown.
Fortunately, we are still within a downtrend (-64 bps) but have retraced back to where we were 90-days ago.
The operation in Iran is ongoing and escalating.
Without getting into the weeds on the mission’s objective, bottom line is market volatility just returned with a vengeance, especially for bonds.
War is inflationary, especially one that has the potential of long-term disruptions for oil supply chains.
However, that’s just where the nightmare begins…
The upcoming week is also “inflation data week” and finishes on Friday the 13th – the 2nd in two months.
The week includes both the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE), sandwiched between two inflation sentiment surveys.
We also get durable goods, three big Treasury auctions (3yr, 10yr, 30yr), JOLTS Job Openings, and a GDP update.
Not to mention existing home sales and housing starts.
The only thing certain about this week is it won’t be for the faint of heart.
Stay tuned for the Lock-O-Meter rate lock guide tomorrow as part of the Mortgage Rate Price Tracker.
Thanks for reading.
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