Happy Friday and 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?
Rates continue to tick up in Freddie Mac PMMS
Yesterday was Thursday, and that means the folks over at Freddie Mac released their Primary Mortgage Market Survey. The average rate on a 30-year fixed rate mortgage rose 3 basis points to 3.45% (0.5 points); the average rate on a 15-year fixed rate mortgage ticked up 3 basis points to 2.75 (0.5 points); and the average rate on a 5-year ARM went up 2 basis points to 2.78% (0.5 points).
Since data was collected for last week’s PMMS, more and more investors began to revert back to their normal ways, pushing long-term government bond yields up, with mortgage rates following suit. Two weeks ago, the yield on the 10-year yield was at 1.38%; right now, it’s at 1.58%. It’s interesting, though, that while the 10-year yield has seen a significant spike these past two weeks, mortgage rates continue to make only modest gains. Since the July 7th PMMS, the average rate on a 30-year fixed rate mortgage has climbed up only 4 basis points.
Click here to get today’s latest mortgage rates.
Here is what chief economist at Freddie Mac Sean Becketti said about mortgage rates this week:
“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their record (10-year Treasury yield) and near-record (30-year mortgage rate) lows. This week, the 30-year fixed mortgage rate increased 3 basis points to a still-quite-low 3.45 percent. With the Federal Reserve on hold and the UK monetary authority taking at least a one-month breather, we don’t expect any significant movement in mortgage rates in the near-term. This summer remains an auspicious time to buy a home or to refinance an existing mortgage.”
Click here to get today’s latest mortgage rates.
Fed Fund futures
The Fed Fund futures took a step backwards today. It’s the first time in a week or so that the odds have worsened for a 2016 rate hike. No one expects anything to happen until possibly December, where the odds are 40% for a quarter point hike, 7.5% for a half point hike, and 0.3% for a three-quarter point hike.
What does this mean for me?
Mortgage rates moved up again but they are still at very low levels. If you’re in the market for a new house, you’ve picked a good time. Similarly, if you’re looking to refinance your current mortgage, there are plenty of opportunities to save money on your monthly payment out there.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PMI Manufacturing Index Flash
The PMI manufacturing index for July came in at 52.9. That’s above the consensus for 51.9, and above the prior reading of 51.4. That’s the best reading since October of last year.
Notable events this week:
Monday:
- Treasury auctions
Tuesday:
- Housing starts
Wednesday:
- EIA Petroleum Status Report
Thursday:
- Philly Fed Business Outlook Survey
- FHFA House Price Index
- Existing Home Sales
Friday:
- PMI Manufacturing Index Flash
from Total Mortgage Underwritings Blog http://ift.tt/2a1kODD
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