Mortgage Rates – September 23, 2013

What's Ahead For Mortgage Rates This Week – September 23, 2013Last week was all about the Federal Reserve and their decision to continue purchasing $85 Billion of Mortgage Backed Securities and Treasury’s every month. Fed Chairman Ben Bernanke in his scheduled statement indicated that economic conditions were not yet adequately improved to withstand any decrease in the federal quantitative easing program.

The Fed also reaffirmed that the target federal funds rate would remain at 0.00 to 0.25 percent until the national unemployment rate reached 6.50 percent and inflation reaches 2.00 percent.

The national unemployment rate was 7.30 percent and the Fed projects that inflation will remain under 2.00 percent through 2015.

In both the FOMC statement and his press conference, Chairman Bernanke repeatedly emphasized that the Fed would take no action to reduce QE until the economy strengthens. No automatic reduction of QE purchases would take place without full consideration of the nation’s economy.

The QE program is intended to keep long-term interest rates low, and the announcement that QE would not be tapered resulted in mortgage rates moving lower by around .25%.

Big Week For Mortgage Rates

This week is packed with economic releases including Consumer Confidence, GDP and the Fed’s favorite gage on inflation PCE. Freddie Mac will release its weekly summary of average mortgage rates and weekly jobless claims will also be released Thursday.

DateTime (ET)Economic ReleaseActualMarket ExpectsPrior
24-Sep9:00 AMCase-Shiller 20-city Index11.50%12.10%
24-Sep9:00 AMFHFA Housing Price IndexNA0.70%
24-Sep10:00 AMConsumer Confidence8081.5
25-Sep7:00 AMMBA Mortgage IndexNA11.20%
25-Sep8:30 AMDurable Orders0.40%-7.40%
25-Sep8:30 AMDurable Goods -ex transportation0.90%-0.80%
25-Sep10:00 AMNew Home Sales416K394K
25-Sep10:30 AMCrude InventoriesNA-4.368M
26-Sep8:30 AMInitial Claims325K309K
26-Sep8:30 AMContinuing Claims2775K2787K
26-Sep8:30 AMGDP – Third Estimate2.50%2.50%
26-Sep8:30 AMGDP Deflator – Third Estimate0.80%0.80%
26-Sep10:00 AMPending Home Sales-2.30%-1.30%
26-Sep10:30 AMNatural Gas InventoriesNA46 bcf
27-Sep8:30 AMPersonal Income0.40%0.10%
27-Sep8:30 AMPersonal Spending0.20%0.10%
27-Sep8:30 AMPCE Prices – Core0.10%0.10%
27-Sep9:55 AMMichigan Sentiment – Final77.376.8