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 headed lower
After yesterday’s terrible ISM index reading–the worst since 2010–long term bond yields took a tumble. The yield on the 10-year U.S. treasury note hit a two-week low at 1.54% yesterday, and has since fallen even further to its current position of 1.52%. That’s a full 10 basis points from yesterday’s high. Mortgage rates usually follow the lead of the 10-year yield, so rates are definitely trending lower.
The Federal Reserve is not going to be pleased with this turn of events, as it puts a damper on any plans to hike rates at an upcoming meeting. I imagine that the Fed hawks will still be looking for ways to spin the debate for a near-term rate hike, but this is certainly a setback.
The market’s best indicator of when a rate hike will take place, the Fed Funds futures, is now showing much more skepticism about the rest of the 2016 meetings. September and November, which had been as high as 24.0% last week, are now at 15.0% and 18.5%, respectively. December still has slightly above a 50% chance.
What does this mean for me?
More goods news for borrowers. Mortgage rates are low and moving lower. That means right now remains an excellent time for anyone looking to lock in a low rate on a purchase or refinance. All it takes is a quick phone call to see if you can save on your monthly payment.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
Kansas City Fed President Esther George and Richmond Fed President Jeffrey Lacker will testify today at a hearing before the House Committee on Financial Services’ Subcommittee on Monetary Policy and Trade on the regional Fed banks’ governance.
JOLTS
Job openings continue to point toward growth in the labor market. The headline reading came in at 5.871 M for July. That’s up from the prior reading of 5.624 M.
Beige Book
The beige book comes out approximately two weeks before an FOMC meeting. It’s composed of anecdotal evidence on economic conditions from the each of the 12 Fed districts. Some pundits like to claim that the beige book has the ability to influence the upcoming FOMC vote. In reality, anecdotal evidence from the Fed does not hold much weight. The Fed has a tendency to go heavy on the optimism, and often times, the report does not match what happens at the upcoming meeting. Of course, investors will still be feverishly refreshing their internet browsers in order to be the first to parse through the report for rate hike clues. If you wish to join them, the beige book will be released at 2:00pm. Get your index finger ready.
Notable events this week:
Monday:
- Labor Day
Tuesday:
- ISM Non-Mfg Index
- Fedspeak
Wednesday:
- Fedspeak
- JOLTS
- Beige Book
Thursday:
- Jobless Claims
- EIA Petroleum Status Report
Friday:
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2c7hqFT
No comments:
Post a Comment