Mortgage rates held fairly steady last week as economic news continued to highlight a weakened economy. Retail sales data and Industrial Production numbers were lower than expected, but the market seemed unfazed, as poor economic news is becoming less and less of a surprise. Inflation numbers continue to show declining inflationary pressures, especially with anything related to oil. While headline inflation numbers have slipped, core inflationary readings have held steady recently, calming fears that a deflationary environment may develop.
This week is a very light week in terms of broad economic news. However, some housing data is due. While some experts believe we may be nearing the bottom, there is little expectation of good news from the industry. Most of the attention this week will be on the Presidential Inauguration. If the general tenor stays upbeat, we might see stocks gaining some strength. This could pull some money out of bonds, which could put some very mild upward pressure on mortgage rates.
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