FHA Mortgage Rate Predictions | This Week | March 15, 2010

The FHA interest rate lost ground last week for the first time in March.  It’s been a very good run for and they are currently lower than any of the experts were predicting.  The FHA loan rate is going to start the week at or below 5%.

Last week was very light on economic data.  This week is the exact opposite.

FHA Loan Rate Predictions | This Week

Expect volatility.  Here is just the economic data on tap:

  • Monday : Industrial Production and Home Builder Index
  • Tuesday : Housing Starts and Building Permits
  • Wednesday: Consumer Confidence
  • Thursday : Producer Price Index and Initial Jobless Claims
  • Friday : Consumer Price Index and Continuing Jobless Claims

Beyond that, we have the meeting on Tuesday.

We don’t expect changes to the , but the post-meeting press release is nearly always the start of a volatile afternoon.  Talk of economic strength will push up stocks and drive mortgage rates higher.  Talk of economic weakness will push stocks lower and typically pull loan rates a bit lower as well.  The issue is that there is a lot of room for rates to go up and not a lot of room for them to go lower.

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