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?
Today is one of those rare days where there is actually a decent amount going on, at least on the surface, that could affect mortgage rates. The Federal Open Market Committee (FOMC) meets today for their third monetary policy meeting of the year. Every meeting is a live one with the possibility of action taking place but there’s basically no disagreement that monetary policy will remain the same when the meeting adjourns tomorrow.
A written statement will be released tomorrow afternoon but unfortunately, we will not have the honor of being graced with a Janet Yellen press conference. I expect the written statement to be very similar to the most recent ones, with maybe a slightly more optimistic tone to it.
Will it point toward a June hike? Sure, it might, but I don’t really think that even matters. I don’t think there’s any chance a rate hike happens in June, and any signs pointing towards that cause just seems like hot air. The Fed Fund futures has a June hike at a 23 percent chance of happening. September is at 49 percent and December is at 73 percent.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
There is a slight risk with mortgage rates over the next few days as the Fed determines what kind of forward guidance they will offer up. The good news is that I don’t think there will be much downside when all is said and done. I expect that mortgage rates will finish the week at levels that are still, historically speaking, very accommodative. So keep on looking for your dream home or planning that refinance because in all likelihood the near future will be a good time to do it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Durable goods orders rise less than expected
Durable goods orders went up 0.8 percent in March, which is lower than predictions for 1.8 percent.
S&P/Case-Shiller Home Price Index
The 20-city home price index showed that home prices rose in February, but at a less robust pace than past months.
Consumer Confidence
The April consumer confidence reading came in at 94.2, down from 96.2 in March. It seems as though consumers aren’t expecting the economy to pick up a considerable amount in the near-term.
Richmond Fed Manufacturing Index
The manufacturing sector remained in the positive but did drop down to 14, from the prior reading of 22.
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/1SHNAb1
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