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?
FOMC meeting concludes
The Federal Open Market Committee (FOMC) wraps up its two day policy meeting today. A written statement will be released at 2:00pm, followed by a Janet Yellen press conference at 2:30pm. While the written statement offers some insight into what the Fed is thinking, the press conference is usually where the real action takes place. It’s been a few months since journalists have gotten to grill the Fed chair, and you can be sure they have some questions ready.
Click here to get today’s latest mortgage rates.
If you’ve been paying attention at all to recent news, you know that no one is expecting the Fed to raise interest rates at this meeting. The main question then becomes, as it has been all year: what type of message will the Fed send about upcoming meetings? November is too close on the horizon and too close to the presidential election to be considered a serious rate hike contender. There have been mild threats here and there, but all year long it has seemed that December has been the only meeting with a worthy chance of a rate hike. Of course, we are only taking about one 25 basis point rate hike. The Fed promised gradual rate hikes and the current trajectory of one quarter point hike per year is certainly that.
The Fed Fund futures have gone up and down but for the past few months it has basically been hovering around a 50% chance of a rate hike in December. Right now it’s showing a 60.1% chance. What happens later today will almost certainly cause that number to change. Ahead of the decision, all of the major U.S. market indexes are trading in the positive. The yield on the U.S. 10-year treasury note is 1.70%. That’s up 1 basis point from where it was at yesterday’s close.
What does this mean for me?
Everyone always gets excited about Fed meetings but the reality is that mortgage rates won’t see any huge changes. They are most likely going to remain within a 5 basis point spread of where they are right now. The good news about that is that mortgage rates are at historically low levels. If you’re on the hunt for a house, or are considering a refinance, you’ve picked an opportune time to do so.
Click here to get today’s latest mortgage rates.
Today’s economic data:
EIA Petroleum Status Report
For the week of 9/16:
Crude oil: -6.2 million barrels
Gasoline: -3.2 million barrels
Distillates: 2.2 million barrels
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/2cKouOf
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