Happy Friday, and welcome to the TMS current mortgage rates blog. There’s some economic news out today, but first, your mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates.
Where are mortgage rates going?
Rates move to 3-year lows
Yesterday’s Freddie Mac Private Mortgage Market Survey was released and it revealed that mortgage rates dropped for the second week in a row. The average rate on the 30-year fixed is 3.57% (0.5 points), 15-year fixed is 2.81% (0.5 points), and the 5-ARM is 2.78% (0.5 points). That puts the 30-year fixed at a 3-year low.
To put everything in perspective, the lowest average rate ever recorded by Freddie Mac was 3.31% back in 2012. What caused the drop? It might be oversimplifying things, but the poor data in the April jobs report definitely played a major hand. Financial market participants realized, once again, that the Fed isn’t going to raise rates anytime soon, and adjusted their positions, which brought rates down.
Aside from the Freddie Mac report, it’s been a very boring week for mortgage rates. The yield on the 10-year U.S. Treasury note is currently trading at 1.73%, which is basically right where it’s been all week, give or take a few basis points. Next week has the potential to be slightly more exciting, with the release of the FOMC minutes from its April meeting. I don’t expect it to show much, but I could be wrong.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
Heading into the weekend, we’re in a good place. It would be a fairly wise use of your time to check out a refinance calculator to see if you could save on your monthly payments.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Retail sales are strong
After a disappointing -0.3% in March, retail sales went up 1.3% in April. That’s higher than the 0.9% expected. Auto sales, up 3.2%, played a large role in the positive report. Retail sales less autos went up 0.8%. Less autos and gas retail sales went up 0.6%.
Producer Price Index barely rises
The Bureau of Labor Statistics’ PPI went up 0.2% in April. Year over year there is no change. Energy prices have been rising but it hasn’t had much of an effect on inflation so far.
Fedspeak
San Francisco Fed President John Williams is set to speak at 6:45 PM today in Sacramento.
Don’t wait for rates to rise. Start your mortgage process now.
Notable events this week:
Monday:
- Fedspeak
- Treasury auctions
Tuesday:
- Job Openings and Labor Turnover Survey
- Treasury auctions
Wednesday:
- EIA Petroleum Status Report
- Treasury auctions
Thursday:
- Weekly Jobless Claims
- Treasury auctions
- Fedspeak
Friday:
- Retail Sales
- Producer Price Index – Final Demand
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/1X7kXH2
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