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 lower
The Freddie Mac Private Mortgage Market Survey (PMMS) came out this morning at 10:00 AM, as it does every week, and it’s showing that mortgage rates dropped lower this week. The average rate on a 30-year fixed is 3.57% (0.5 points), the average rate on a 15-year fixed is 2.81% (0.5 points), and the average rate on a 4-year ARM is 2.78% (0.5 points). The 30-year fixed is now at a low not seen in three years. The lowest average rate on a 30-year fixed mortgage was 3.31% back in 2012. The dip in rates is ostensibly due to the very disappointing April unemployment report last Friday, signaling that a rate hike is still far off in the future.
Data for the survey is collected early on in the week, but the markets haven’t been doing anything anyway, so there’s no reason to believe rates are moving higher anytime soon. The yield on the 10-year U.S. Treasury note is currently trading at 1.75%, which is basically where it’s been all week.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
Mortgage rates down and the 30-year fixed at a three-year low… I’d say that qualifies as excellent news for borrowers. The opportunity is definitely there for many homebuyers to refinance at a lower rate and save on their monthly payments. It’s also a great time for prospective homebuyers to lock in a low rate for years to come.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Weekly jobless claims are up
The number of applications for U.S. unemployment benefits went up 20,000 this week to 294,000. That’s well above the consensus for 267,000. This is the second week in a row with a big spike (last week saw a 17,000 jump). The four-week moving average is now at 268,250. What is the reason for the recent rise? No one seems to be able to pin down a particular cause.
Treasury auctions
A 30-year bond auction will take place at 1:00 PM today.
Fedspeak
Several Fed officials have speaking engagements today:
- Cleveland Fed President Loretta Mester in Reichenau Island, Germany
- Boston Fed President Eric Rosengren in Concord, New Hampshire
- Kansas City Fed President Esther George in Albuquerque, New Mexico
Don’t wait for rates to rise. Start your mortgage process now.
Miscellanea:
- Brazil’s Senate voted to suspend President Dilma Rousseff this morning, accusing her of borrowing from state banks to conceal an impending deficit. An impeachment trial will begin and could last several months.
- The Bank of England’s rate-setters voted to keep interest rates at current levels today. Governor Mark Carney warned about the consequences of a Brexit.
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/1WszIFq
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