Very little change to rates after January FED Meeting

A quiet week for mortgage markets despite January's FED meeting.

Happy Friday from Local Mortgage!

It felt like a pretty slow week in the mortgage and real estate business this week as Memphis and other cities across the southeast were shut down due to winter weather.

Mortgage markets were relatively quiet as well, even with Wednesday’s Fed Meeting.

Rates remain virtually unchanged, so we are still at 5.875% for our best 30-year fixed conventional scenario.

Wednesday’s FED Meeting was the headliner this week, and as expected, there were no rate changes. There also wasn’t really any new or unexpected news revealed other than it seems the FEDs economic outlook has improved slightly. With virtually no new news and no surprises, market reaction was minimal.

Friday’s release of the Producers’ Price Index (PPI) was much higher than expected. This index is a secondary inflation indicator, as investors typically place more weight on its counterpart, CPI. Bonds didn’t seem to care much at all about this morning’s miss as the PPI is notoriously volatile as compared to other inflation indicators.

Next week will bring several economic reports, starting with the ISM manufacturing index on Monday, the services sector index on Wednesday and then we will get the key employment report on Friday.

Hope everyone has a great weekend. Stay warm!