Federal Reserve officials appear to be in a holding pattern on any near term rate hikes following the vote by the UK to exit the European Union and mixed economic data. Mortgage rates improved to near record lows following the financial turmoil triggered by the Brexit vote. Assets were transferred from perceived riskier investments, such as stocks, into relatively safe investments like US Treasurys and Mortgage Backed Securities.
Rates should remain low as the Fed assesses how the Brexit vote might affect the US economy. On Friday, the Labor Department will release June employment numbers which are expected to be considerably better than May’s dismal report.