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?
Mortgage rates are lower heading into the weekend
On Thursday, the Freddie Mac Private Mortgage Market Survey (PMMS) came out and it showed that mortgage rates had retreated a few basis points from where they were last week. The average rate on a 30-year fixed rate mortgage is now at 3.48% (0.6 points); the average rate on a 15-year fixed mortgage is 3.76% (0.5 points); and the average rate on a 5-year ARM is to 2.80% (0.5 points).
Click here to get today’s latest mortgage rates.
The big news last week was that the 30-year had finally risen out of the 3.41%-3.48% range that it had been in for the past 11 weeks. Well, that upward climb was short-lived. Data for the survey is collected early on in the week, so it seems that anticipation of the Fed’s decision on Wednesday had a hand in pushing rates lower.
Obviously, the report does not reflect the current market conditions. If it did, we would be seeing rates even lower than where they are. The yield on the U.S. 10-year treasury note (the best market indicator of where mortgage rates are headed) has been on a downward trajectory since the conclusion of the FOMC meeting. Early on in the week, the yield had been trading around 1.72%. Right now, it’s all the way down to 1.62%. Mortgage rates have no doubt followed suit, and if the trend holds, we’ll see rates down several basis points in next week’s PMMS.
Here’s what chief economist at Freddie Mac, Sean Becketti, had to say about mortgage rates this week:
“The 10-year Treasury yield declined after last week’s post-Brexit high in anticipation of the Fed’s September policy meeting. The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent.”
What does this mean for me?
The all-time low rate in the PMMS for the 30-year is 3.31%. Current mortgage rates are only a little over 10 basis points above that mark. That’s great news for borrowers, especially when you consider that rates don’t seem like they’re primed to spike anytime soon. If you’re on the hunt for a house or you’re thinking about refinancing, right now is as good a time as any to make it happen.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PMI Manufacturing Index
The PMI index slipped 0.7 from its previous reading, putting it at 51.4.
Notable events this week:
Monday:
- Nothing
Tuesday:
- FOMC Meeting Begins
- Housing Starts
Wednesday:
- EIA Petroleum Status Report
- FOMC Meeting Concludes
Thursday:
- Jobless Claims
- Existing Home Sales
Friday:
- PMI Manufacturing Index
from Total Mortgage Underwritings Blog http://ift.tt/2d3n0cl
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