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 started the week on a downward trajectory, and that trend is continuing today. The yield on the 10-year U.S. treasury note (the best market indicator of where mortgage rates are going) is currently trading around 1.56%. That’s two basis points lower from where it closed on Monday and over ten basis points lower from where it was this time last week.
The week after a Fed meeting is usually lacking in excitement, and this one has been par for the course so far.
The most exciting this to happen so far this week was the presidential debate. Donald Trump, who hasn’t minced words about the Fed before, took the opportunity early on to attack the Fed for keeping interest rates low in order to not disturb the markets before the election. He said, “When they raise interest rates, you’re going to see some very bad things happen, because they’re not doing their job.”
Click here to get today’s latest mortgage rates.
Because Hilary Clinton’s regime would basically be a continuation of Obama’s policies, if rates were raised and chaos ensued, there would be many Americans who would rethink their desire to continue down the current policy path. It’s difficult to hang your hat on speculations, however, there’s virtually no chance that Fed Chair Janet Yellen would keep her job if Donald Trump was elected. He has said so himself. She’s a liberal, he’s a republican–they’re not going to mix.
Now, I don’t know exactly what goes on during those Fed meetings, but they did basically come out and say that the markets are primed for a rite, but we’re holding off for now. I can’t confidently say that the Fed is withholding on a rate hike due to political motivations, however, I can certainly understand why Donald Trump would be suspicious. The general consensus is that Hilary Clinton would keep the status quo and would therefore be better for the markets than trump.
The takeaway right now is that mortgage rates are trending lower. We get the third estimate for second quarter GDP on Friday, which is the piece of data this week with the most potential influence, but I’m not expecting much movement.
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates have been on a downward trajectory the past few days. That means that right now is a great time to lock in a low rate on a refinance or a purchase. There’s nothing on the immediate horizon that signals a spike in rates, but the market doesn’t always forecast well. The safe decision is to act now while rates are low.
Click here to get today’s latest mortgage rates.
Today’s economic data:
S&P Case-Shiller HPI
The 20 city home price index is unchanged from July. That puts it at 5.0% year over year.
Consumer Confidence
Consumer confidence is up in September, coming in at 104.1.
Fedpeak
Vice Fed Chair Stanley Fischer is set to speak at 11:15am this morning.
Notable events this week:
Monday:
- New Home Sales
- Fedspeak
Tuesday:
- S&P Case-Shiller HPI
- Consumer Confidence
- Fedpeak
Wednesday:
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- GDP
- International Trade
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
from Total Mortgage Underwritings Blog http://ift.tt/2dh4WLQ
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