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 dip in Freddie Mac PMMS
The Freddie Mac Private Mortgage Market Survey (PMMS) came out on Thursday. Freddie Mac analysts take data from various lenders across the nation to get a snapshot of the current mortgage rate situation. After some less than stellar inflation data last Friday, treasury yields fell and that caused mortgage rates to move slightly lower this week. That’s oversimplifying a bit, but it’s a suitable explanation nonetheless.
Click here to get today’s latest mortgage rates.
How much did rates fall? The average rate on a 30-year fixed rate mortgage went down 2 basis points to 3.43% (0.5 points); the 15-year fixed rate mortgage fell 2 basis points to 2.74% (0.5 points); and the 5-year ARM was actually the odd man out, going up 2 basis points to 2.76% (0.4 points).
Now, it would be remiss of me if I did not mention that most of the data collected for the survey is done so earlier in the week. Treasury yields have moved up a few basis points from where they were on Monday and Tuesday, and that means that mortgage rates have done so as well. We’re not talking about any major upward shifts, just a slightly higher than where they started the week. If we step back and look at things from a historical perspective, mortgage rates are currently at extremely low levels.
Click here to get today’s latest mortgage rates.
The Fed Fund futures grew a little more optimistic about a 2016 rate hike these past few days. There was a lot of fedspeak that went on over the course of the week, and ultimately, it nudged financial market participants into believing a little more in the potential for higher rates this year. Investors may not have completely bought into the fact that September is firmly on the table, as they are only giving it an 18.0% of a rate hike, but it was at a 12.0% chance to start the week.
November currently has a greater chance than September at 24.8% (even though the meeting is less than one week before the presidential election and realistically has about a 0% chance). December has been, and will remain for all of 2016, the only true contender for a rate hike. It’s still a bit of a toss up, though, with just over a 50% chance.
What does this mean for me?
It was a fairly slow week for mortgage rates. Not a whole lot happened and rates are still in the range they’ve been in for the past two months. The good news for borrowers is that it continues to be a great time to refinance your current mortgage or to purchase a home.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Nothing
Sorry folks, but there isn’t any important economic data out today.
Notable events this week:
Monday:
- Empire State Manufacturing
Tuesday:
- Consumer Price Index
- Housing Starts
- Industrial Production
- Fedspeak
Wednesday:
- Atlanta Fed Business Inflation Expectations
- EIA Petroleum Status Report
- Fedspeak
- FOMC Minutes
Thursday:
- Jobless Claims
- Philadelphia Fed Business Outlook
- Consumer Comfort Index
- Fedspeak
Friday:
- Nothing
from Total Mortgage Underwritings Blog http://ift.tt/2bPlCyC
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