(Courtesy of Joe Massey)
After trending downward at the end of the previous week, mortgage rates spent much of last week moving back upward. One of the bigger drivers of rates for the week was news that the Eurozone has moved out of its recession. If growth has returned to Europe, our GDP will very likely improve in the coming quarters. Economic data on this side of the Atlantic was fairly muted last week. Retail Sales nudged slightly higher and weekly claims for unemployment hit a recovery low. However, Industrial Production remained flat, and a number of other economic indicators pulled back slightly.
This week could easily see mortgage rates moving higher, especially with the market becoming more and more convinced that the "tapering" of the Fed's support programs will begin soon. The minutes from the Fed's last meeting will be released this week. Any signs that more governors are beginning to favor reducing monetary supports, sooner rather than later, will help move mortgage rates higher. More good news from housing data due this week could also help propel mortgage rates higher.