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?
Freddie Mac shows rates are down
It’s Thursday after 10 AM, and that means the Freddie Mac Primary Mortgage Market Survey (PMMS) has been released. It is the first PMMS since the dismal May jobs report and as expected, it’s showing that mortgage rates moved lower this week. The average rate on a 30-year fixed mortgage went down 6 basis points to 3.60%. The average rate on a 15-year fixed went down 5 basis points to 2.87%. And the average rate on a 5-year ARM dropped 6 basis points to 2.82%. All had 0.5 points.
To put things in perspective, 3.57% is a 3-year low for the 30-year fixed that was reached about a month ago. Clearly, we’re not too far from that at the moment. Stepping back even more, we know the all-time low for the 30-year fixed rate happened in November 2012 with a rate of 3.31%. Right now we’re only 29 basis points above that mark. All things considered, that’s not a lot.
The highest average on the 30-year in all of 2016 happened the very first week of January with a rate of 3.97%. Since then rates dropped and have yet to threaten coming close to 4.00%. Last year at this time rates were around 4.04%. All this is to say that rates are pretty darn low right now.
Click here to get today’s latest mortgage rates.
The yield on the U.S. 10-year Treasury note has fallen this morning to levels not seen since February. It’s currently trading at 1.66%, which is down 4 basis points from yesterday’s close of 1.70%. Mortgage rates often follow wherever the 10-year yield goes so this is good news for borrowers.
Fed Fund futures
I mentioned yesterday that it’s slow going until the FOMC meeting concludes next Wednesday. That means the Fed Fund futures are basically unchanged from yesterday. They are showing the chances of a rate hike at 4%, 24%, 43%, 45%, and 63%, for June, July, September, November, and December, respectively.
What does this mean for me?
It means it’s a good time to be in the market for a refinance or purchase. Rates are low. There’s definitely the opportunity for some homeowners to refinance and save on their monthly payments. All it takes is a phone call to find out if you’re one of them. As for those seeking to purchase a new home, the 30-year fixed rate mortgage is back around 3-year lows. That’s perfect for borrowers looking 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
- In good news for the labor market, weekly jobless claims are at 264,000 for the week of 6/4/16. That’s 4,000 below the previous reading and 6,000 below economist’s consensus. The 4-week moving average is now 7,5000 lower at 269,500.
30-Year Treasury auction
- There will be a 30-year Treasury note auction at 1:00 PM.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Janet Yellen speaks
Tuesday:
- Productivity and costs
- 3-Year Treasury auction
Wednesday:
- Job openings and labor turnover survey
- EIA petroleum status report
- 10-Year Treasury auction
Thursday:
- Weekly Jobless Claims
- 30-Year Treasury auction
Friday:
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/1VOCwvL
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