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?
Freddie Mac PMMS has rates up slightly
The Freddie Mac Primary Mortgage Market Survey got released today, as it has a penchant for doing every Thursday morning at 10:00 AM. It wasn’t much of a shocker that mortgage rates would be moving higher this week, but considering the 10-year yield rose by nearly 20 basis points since last Thursday, the modest rise in rates is somewhat surprising. The average rate on a 30-year fixed rate mortgage went up 3 basis points to 3.45% (0.5 points); the average rate on a 15-year fixed rate mortgage went up 3 basis points to 2.75 (0.5 points); and the average rate on a 5-year ARM rose 2 basis points to 2.78% (0.5 points).
Here is what chief economist at Freddie Mac Sean Becketti had to say about the week that was with mortgage rates:
“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 have been on an upward trajectory ever since bottoming out after the Brexit. December continues to be the only main contender for a rate hike. For the first time in a while, the futures are pricing it in at over a 50% chance of a hike. We’re drawing close to next week’s FOMC meeting, and it’s always possible that the language coming out from Fed officials after that meeting will have an effect on the futures. I’m still of the belief that there will be zero rate hikes in 2016.
What does this mean for me?
Mortgage rates went up this week, but not by very much. The average rate on a 30-year fixed rate mortgage is only 14 basis points above the all-time low. That means now is a great time to purchase a home, or refinance your current mortgage.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Philly Fed Business Outlook Survey
The Philly Fed General Business Conditions Index came in at -2.9 in July. That’s well below the consensus for 5.0, and even out of the consensus range of 0.0 to 9.0.
FHFA House Price Index
The FHFHA house price index rose 0.2% in May. That’s below the consensus for 0.4%. Year over year, the index is at 5.6%.
Existing Home Sales
Existing home sales came in at 5.570 million for June. That’s 1.1% higher from May’s reading. Year over year, existing home sales are up 3.0%.
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/29Yoztj
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