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?
The yield on the 10-year Treasury is currently fluctuating around 1.78 percent this morning. That’s just a tick above yesterday’s close of 1.77 percent. Mortgage rates tend to follow the path of the 10-year yield, so for right now, it doesn’t seem like rates are moving significantly one way or another. It is expected that rates will rise from last week’s Freddie Mac Primary Mortgage Market Survey, but they should still remain in the lowest level of the TMS rateometer.
The ever-looming Fed rate hike continues to dwell on the minds of financial market participants, but there doesn’t seem to be a satisfying end in sight. It’s my belief that any action will be pushed off until September or December–if it happens at all in 2016. That’s a big if right now. For the Fed’s sake, they really need to hope that happens–and maybe they’ll force it to happen–or else they will take a big hit in the credibility department.
There are commentators out there who argue that even though the Fed made the initial prediction for 3-4 rate hikes in 2016, they shouldn’t lose credibility when they make an adjustment based on changing market conditions. I can somewhat sympathize with that position as the Fed can’t foresee every economic event that will unfold; however, the court of public opinion is often merciless and would be much less understanding.
After all, these are supposedly our nation’s finest economists and if their predictions come nowhere close to reality, I think they deserve to lose at least some credibility.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
I think that the current mortgage rate environment is very favourable to homebuyers. Rates are just above 2016 lows, and while it’s possible that a random event influences the markets and shoots mortgage rates sky-high, it doesn’t seem like that will happen. The same could be said about rates moving much lower. You could take a risk and see if rates go down but I think the gamble isn’t worth the payoff. My advice for right now is if you’re thinking about purchasing a home or refinancing your current mortgage, you should lock in a rate sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Housing starts disappoint
Housing starts fell a solid 8.8 percent in March to 1.089 million. Economists had predicted 1.167 million, so the reading isn’t exactly signalling a booming start to the spring homebuying season.
Don’t wait for rates to rise. Start your mortgage process now.
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/1MFFpww
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