Rates were even last week and the housing market still slowing a bit which is actually a good thing for buyers because it finally gets sellers more motivated (nervous). Rates are in great shape too, so timing is pretty good for buyers going into the new year.
As for next week, rate markets will still be in quiet holiday trading mode, and the jobs report next Friday January 4 is by far the most important rate news of the week for 4 reasons:
1. It’s always critical because it shows the overall health of incomes and consumer confidence.
2. It signals inflation if incomes start to rise, and rates will rise on inflation threats.
3. The Fed is no longer telegraphing its plan to rate markets and is now “data dependent,” meaning they’ll adjust their rate controls based on huge data releases like the jobs report (which comes out first Friday of each month). This means rates will swing up and down more unpredictably until the Fed clarifies its rate stance in the coming months.
4. The government shutdown means not all weekly economic data releases will hit as scheduled, so even more weight will be placed on jobs report next week.
Rate guru Matt Graham has more below. Check it out.