Happy Friday everyone and welcome to the TMS current mortgage rates blog. There’s a decent bit of 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?
The Freddie Mac Primary Mortgage Market Survey (PMMS) came out yesterday, and it showed that mortgage rates rose this week. The average rate on a 30-year fixed is now 3.66% (0.6 points), the average rate on a 15-year fixed is 2.89% (0.6 points), and the average rate on a 5-year ARM is 2.86% (0.5 points).
The 10-year Treasury yield dropped after the Fed’s statement was released on Wednesday. Since then, it’s had some ups and downs but has basically stayed around the same spot. Unless it spikes up over the next few days, we should be seeing lower mortgage rates next week.
Looking forward, the April jobs report will come out next Friday. It’s always a big market mover and this time will be no different. The Fed will be hoping for a strong showing, and it’s possible they’ll get it. Of course, what’s often portrayed in the headlines doesn’t exactly portray the reality of the situation. The jobs report isn’t just about the number of jobs created–despite what you might hear–the real issue are the types of jobs. Anyway, we’ll dig deeper into it as the report approaches.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
Rates are low. If you’ve been thinking about refinancing your current mortgage or purchasing a home, now is a great time to do it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Personal Income and Outlays are mixed
Income outperformed spending in March, according to data out this morning. Month over month, personal income rose 0.4%. That’s above the consensus for 0.3%. Consumer spending went up 0.1%, month over month, which is below the consensus of 0.2%. The core PCE–the Fed’s favorite inflation measure–only rose by 0.1% in March. Year-over-year, the core PCE is at 1.6%. That’s one-tenth lower than the prior reading and four-tenths lower than the Fed’s target of 2%. With inflation continuing to drag, hopes of even one more rate hike in 2016 hang in the balance.
Employment Cost Index shows wage strength
The ECI came in right in line with expectations with a 0.6% rise, quarter to quarter. The index takes into account all employee compensation costs, such as wages, salaries, and benefits. Wages drove the growth this go around, which is sure to sit well with Fed policymakers.
Chicago PMI moves lower
The Chicago PMI fell from 53.6 to 50.4 this month. There’s little reason to think that the Chicago economy will get out of its flat-to-soft trend anytime soon.
Consumer Sentiment drops
The consumer sentiment index has fallen to 89.0 from 89.7, reflecting consumer’s decreasing optimism about the future of the U.S. economy.
Don’t wait for rates to rise. Start your mortgage process now.
Notable events this week:
Monday:
- New Home Sales
- Dallas Fed Manufacturing Survey
Tuesday:
- Durable Good Orders
- S&P/Case-Shiller Home Price Index
- Consumer Confidence
- Richmond Fed Manufacturing Index
Wednesday:
- International Trade
- EIA Petroleum Status Report
- Pending Home Sales
- Fed Statement
Thursday:
- GDP
- Weekly Jobless Claims
Friday:
- Personal Income and Outlays
- Employment Cost Index
- Chicago PMI
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/24pgHVI
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