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?
June jobs report
It’s the first Friday of the month and that means that the Employment Situation (a.k.a. the jobs report) was released at 8:30 AM. The report showed that the U.S. economy added 287,000 jobs in the economy. That’s much higher than the 180,000 that economists were predicting, and a soaring rebound from the 38,000 added in May. The unemployment rate went up from 4.7% to 4.9%.
The 10-year yield briefly rallied when the report came out but has since retreated back down to its opening position at 1.39%.
Rates drop down in Freddie Mac PMMS
The Freddie Mac Private Mortgage Market Survey came out on Thursday and it revealed that there was a significant drop in mortgage rates for the second week in a row. The average rate on a 30-year fixed rate mortgage dropped by 7 basis points and is now at 3.41% (0.5 points); the average rate on a 15-year fixed mortgage rate fell by 4 basis points and is now at 2.74% (0.4 points); and the average rate on a 5-year ARM sunk 2 basis points to 2.68% (0.5 points).
Amazingly, the 30-year fixed rate is now a mere 10 basis points above the all-time low. Long term government bond yields hit all-time lows this week, so the fact that mortgage rates fell further was not much of a surprise.
Click here to get today’s latest mortgage rates.
Fed Fund futures
The Fed Fund futures are showing a little more faith in a 2016 rate hike, but the odds are still far from favorable. September and November now have a 12% chance, while December has moved up to 26.5%. There are no longer any meetings with a rate cut priced in. I’m still skeptical that a rate hike will happen in 2016.
What does this mean for me?
Mortgage rates are still low. The June jobs report showed that the economy might be stronger than expected, but so far, it isn’t having too much of an effect on mortgage rates. They are still down near all-time lows, and that is definitely good for anyone looking to refinance their current mortgage or purchase a home.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Nonfarm Payrolls
- See above.
Notable events this week:
Monday:
- Markets closed – Independence Day
Tuesday:
- Factory Orders
- Treasury auctions
- Fedspeak
Wednesday:
- International Trade
- Fed Minutes
- Fedspeak
Thursday:
- ADP Employment Report
- Weekly Jobless Claims
- EIA Petroleum Status Report
Friday:
- Nonfarm Payrolls
from Total Mortgage Underwritings Blog http://ift.tt/29Gw1eP
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