Tuesday's Market Update: February 21, 2023
This morning, bond rates jumped in reaction to news reports. Over the weekend, it became clear that this could happen, which ended up being true. The expectation is for rates to keep increasing until July and maybe even after that. It’s best to lock in a loan as soon as possible since rates will likely be higher in the near future.
This week, the Federal Reserve will release meeting minutes on Wednesday. On Thursday, a revised GDP report will be released and on Friday, PCE inflation data comes out. The Fed meeting minutes could indicate more aggressive rate increases which would not lead to a good start to the week. There are also Treasury auctions that could cause difficulty if buyers don’t show up. Some housing data such as existing and new home sales is coming out but it won’t have an effect on rates. All in all, there isn’t much to look forward to this week, even the PCE report is unlikely to bring good news.
In closing, loan rates should be locked in now, as sentiment about Federal Reserve rate hikes looks unlikely to shift. Evidence of a strong economy and labor market will likely cause the Fed to continue raising rates. Recent signs that the economy was slowing down and inflation was declining have capitulated, suggesting that higher rate levels may be here to stay. If you are wondering how the current market could affect the sale of your home and what your next move should be, I urge you to contact me for a consultation. I will work with you to create a suitable strategy that best fits your needs. Together, we can navigate this market and come out on top!