Welcome to the TMS current mortgage rates blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates.
Where are mortgage rates going?
U.S. 10-year Treasury Note remains near 3.5-year low
Our favorite indicator of where mortgage rates are headed–the 10-year yield–moved higher at the start of trading today but has since retreated back down to yesterday’s close of 1.61%. There’s no way to guarantee what will happen after the Fed meeting ends this afternoon, but if the present trend holds that means mortgage rates will continue to be much lower than they were this time last week.
If the Fed comes out more dovish than expected, rates could drop. Then again, if they come out more hawkish, we could see rates rise. We’ll have to wait and see.
What does this mean for me?
Mortgage rates are still low. If you’re thinking about refinancing or purchasing a home, right now is a great time to lock in a low rate.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PPI-FD reading is strong
- Potential signs of upward inflationary pressure are coming out of the May PPI-FD. Month-over-month, the index rose a solid 0.4%. That’s the best reading since May of last year. It’s a step in the right direction, but it’s not enough to take the year-on-year (-0.1%) reading over the positive. Fed policymakers will no doubt be talking about this report today at the FOMC meeting.
Empire State Manufacturing
- After an abysmal May reading of -9.02, the Empire State Manufacturing is back in the positive at 6.01. New orders are up, but unfilled orders went further into contraction, which is bad news for employment. The next manufacturing report comes out tomorrow from the Philly Fed.
Industrial Production is lower
- Month-over-month, production and manufacturing both fell by 0.4% in May. A sharp decline in vehicle production led the losses.
EIA Petroleum Report
- Crude oil inventories dropped by 0.9 million barrels.
- Gasoline fell by 2.6 million barrels.
- Distillates gained 0.8 million barrels.
FOMC Meeting Ends
- Get your popcorn ready. The FOMC meeting concludes today with a statement at 2:00 PM and a Janet Yellen press conference at 2:30 PM.
Notable events this week:
Monday:
- Nothing
Tuesday:
- FOMC Meeting Begins
- Retail Sales
- Import and Export Prices
- Business Inventories
Wednesday:
- PPI-FD
- Empire State Manufacturing
- Industrial Production
- EIA Petroleum Report
- FOMC Meeting Ends
Thursday:
- CPI
- Weekly Jobless Claims
Friday:
- Housing Starts
from Total Mortgage Underwritings Blog http://ift.tt/1U8yUQV
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