Happy Friday and welcome to the TMS current mortgage rates blog. There’s some economic data out today, but first, your mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates.
Where are mortgage rates going?
Government bonds in Europe sold off on Thursday, an event that eventually made its way into the U.S., causing the yield on the U.S. 10-year Treasury note to rise for the fourth day in a row to April highs. The yield closed yesterday at 1.86 percent and is currently trading at 1.89 percent. Mortgage rates have a tendency to follow the lead of the 10-year yield, so we could be seeing slightly higher rates in next week’s Freddie Mac PMMS report.
Yesterday’s PMMS showed mortgage rates barely changed from the prior week. The average rate for the 30-year fixed rate came in at 3.59 percent (0.6 points); the average rate for the 15-year fixed at 2.85 percent (0.5 points); and the average rate on the 5-year ARM at 2.81 percent. The only catch is that the data for the report is mostly collected early on in the week and therefore won’t have factored in the recent bond yield rally.
The Federal Reserve’s April meeting on monetary policy is next Tuesday and Wednesday. Nothing is expected to result from the two day event, with the Fed Fund futures showing a 1 percent chance of a rate hike. The next meeting in June has a 23 percent chance and December has risen to a 71 percent chance.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
Spring is finally in full force here in the northeast and I couldn’t be happier. The warm weather means energized homebuyers will have the opportunity to stretch their legs and take a look at some open houses. The good news is that mortgage rates are still at levels that aren’t far above all-time lows. I’ve been saying it for a while but it hasn’t lost a bit of truth–if you’re looking to purchase a home or refinance your current mortgage, now is a great time to make it happen.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PMI Manufacturing Index Flash is Unimpressive
Yesterday’s Philly Fed report came in soft and the PMI index has decided to follow suit. Expectations were for a reading of 52.0 but the actual number came out to be 50.8. Anything over 50 signals growth, but it’s less impressive than what economists had predicted.
Don’t wait for rates to rise. Start your mortgage process now.
Other events:
The European Central Bank President Mario Draghi spoke yesterday after a monetary policy meeting about the improving economic conditions and said that negative rates could go lower if it was deemed necessary.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Housing Starts
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Philly Fed Business Outlook Survey
- Weekly Jobless Claims
Friday:
- PMI Manufacturing Index Flash
from Total Mortgage Underwritings Blog http://ift.tt/247RhvQ
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