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?
The U.S. markets are in a bit of a holding pattern at the moment. Yesterday, a mere .12% drop in the Dow ended the most reserved month for stocks in 21 years. How reserved have they been? Well, the S&P 500 only moved more than 0.5% five out of the last 30 days. With all of the chaotic ups and downs we’ve witnessed these past few years, the calm because all the more remarkable.
Click here to get today’s latest mortgage rates.
For this week at least, it does seem that investors are leaning on the timid side in order to avoid making any mistakes before Fed Chair Janet Yellen speaks on Friday at the biggest monetary-policy conference of the year–the Jackson Hole Symposium. The topic at the conference this year is “Designing Resilient Monetary Policy Frameworks for the Future.” Janet Yellen hasn’t been in the spotlight recently, so this remark offers a chance for her to drop some hints about the chances for a 2016 rate hike. With last week’s comments by several Fed presidents about September having a real shot at a rate hike, investors are eager to figure out if the Fed chair is on board. The September meeting concludes on the 14th, which means it’s less than a month away.
The yield on the U.S. 10-year treasury note is currently trading at 1.54%. That’s exactly where it closed yesterday. Mortgage rates have a tendency to follow in the footsteps on the 10-year yield, so for the moment, mortgage rates are unchanged. I expect it to be a smooth, slow ride until Friday, but after that, it’s anyone’s guess.
What does this mean for me?
Mortgage rates are flat right now and that’s good news for borrowers. The low rate environment should continue through Thursday, but after that, there is the potential for rates to rise. Right now is a great time to refinance your current mortgage or purchase a home. I would just recommend you do it sooner than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PMI Manufacturing Index Flash is soft
The PMI manufacturing report has come in at 52.1 this morning. That’s below the consensus for 53.2 and down from the prior reading of 52.9. The current reading is only a touch above the break-even point of 50.0. It’s not a good sign of things to come for manufacturing.
New Home Sales at 654,000
New home sales surged 12.4% in July to 654,000. A decline in home prices (median price fell 5.1%) could be a factor in the recent uptick in sales.
Richmond Fed Manufacturing Index is in the negative
The Richmond Fed manufacturing index saw a sharp decline in August, dropping from the prior reading of 10 to its current level of -11.
Notable events this week:
Monday:
- Nothing
Tuesday:
- PMI Manufacturing Index Flash
- New Home Sales
- Richmond Fed Manufacturing Index
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Durable Goods Orders
- Jobless Claims
- Consumer Comfort Index
Friday:
- GDP
- International Trade in Goods
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2bdOrCk
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