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There was little change in mortgage rates today. The average borrower was just a hair higher than yesterday afternoon. But it was enough for today’s rates to be the highest they have been since May 1, exactly 2 weeks ago.
The fact that rates are being raised somewhat coincides with today’s most important economic report. Rates are determined by bonds and bonds do better when economic data is weak, generally speaking. With that in mind, the fact that retail sales missed forecasts (0.4 vs. 0.7) should have put some downward pressure on rates.
Instead, traders focused on other components of the report that showed resilience in some areas. Considering auto sales, the report was in line with expectations. Additionally, online sales were their highest since December.
Other economic data showed a rise in industrial production and builder confidence. All told, this was not a compelling argument in favor of the kind of economic slowdown that should help lower interest rates.
On a positive note, in addition to today’s rate spike being relatively subtle, rates also remain well inside the same old sideways range that has persisted (and is actually getting narrower) through late 2022.
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