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 move lower in Freddie Mac PMMS
The Freddie Mac Private Mortgage Market Survey came out today at 10:00 AM and it’s showing that mortgage rates dropped down again. The average rate on a 30-year fixed rate mortgage fell 7 basis points and is now 3.41% (0.5 points); the average rate on a 15-year fixed mortgage rate sunk 4 basis points and is now at 2.74% (0.4 points); and the average rate on a 5-year ARM dipped 2 basis points to its current position of 2.68% (0.5 points).
The 30-year fixed rate is now only 10 basis points above the all-time low. With Treasury yields plummeting to new all-time lows, the dip in rates was not surprising.
Click here to get today’s latest mortgage rates.
Here’s what Chief Economist at Freddie Mac, Sean Becketti, had to say about mortgage rates this week:
Continuing fallout from the Brexit vote drove Treasury yields lower again this week. The 30-year fixed-rate mortgage followed Treasury yields, falling 7 basis points to 3.41 percent in this week’s survey. Mortgage rates have now dropped 15 basis points over the past two weeks, leaving them only 10 basis points above the all-time low.
10-year yield rises
The yield on the U.S. 10-year Treasury note has climbed up 4 basis points from yesterday’s close of 1.37% to 1.41%. It touched down to all-time lows yesterday, but the strength in the weekly jobs claims report has pushed it higher. The June employment situation could have an even greater effect if we get a positive headline number.
Fed Fund futures
The Fed Fund futures have made modest strides the past couple of days. December is still the only real shot at a rate hike this year with a 22.3% chance. Of course, those aren’t very good odds, and I personally don’t think the Fed will raise rates in 2016.
What does this mean for me?
I’ve been saying the same thing for a while now, but it’s only because it’s true. Mortgage rates are extremely low. That means that right now is a great time to find out if a refinance can save you money on your monthly payments. It’s also a great time for borrowers to lock in a low rate for 15 or 30 years down the road. Ultimately, it’s up to you if you want to wait and see if rates go lower, but the safe play is definitely to act now.
Click here to get today’s latest mortgage rates.
Today’s economic data:
ADP Employment Report
The ADP employment report is showing that 172,000 private jobs were added in June. That’s significantly higher than the Econoday consensus of 150,000. It’s good news for the labor market and potentially an indicator of a strong June jobs report.
Weekly Jobless Claims
Weekly jobless claims also point toward a strong labor market. New claims are at 254,000, which is 16,000 lower than the prior reading.
EIA Petroleum Status Report
- Crude oil -2.2 million barrels
- Gasoline -0.1 million barrels
- Distillates -1.6 million barrels
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/29klLYL
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