FHA Interest Rates
The FHA interest rate lost ground last week for the first time in March. It’s been a very good run for mortgage rates 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 Federal Open Market Committee meeting on Tuesday.
We don’t expect changes to the Fed Funds Rate, 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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