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?
Strong manufacturing data yesterday in the ISM Mfg Index pushed the price of long-term bonds down and the yield up, ultimately carrying mortgage rates to slightly higher levels. August had been a poor showing with an ISM Mfg Index reading of 49.4. Anything below 50 signals contraction. Yesterday, however, the reading bounced back above the break-even point with a reading of 51.5. Economists had been expecting something in the range of 49.0 to 51.0, so 51.5 was a surprisingly high reading. It doesn’t point toward a booming resurgence in manufacturing, but it does provide more hope that the Federal Reserve will raise interest rates by the year’s end.
Click here to get today’s latest mortgage rates.
The yield on the U.S. 10-year treasury note is currently trading around 1.65%. That’s a two-week high and over ten basis points from where it was at the end of last week. The 10-year yield is the best market indicator of where mortgage rates are headed, so unfortunately that means that we’re on an upswing. The good news is that they have to climb out from a dip last week that brought them one basis point off of 2016 lows in the Freddie Mac PMMS.
The big market mover this week is of course the September Employment Situation (a.k.a the jobs report) on Friday. The results of the monthly employment reports are always major influencers of Fed decisions. At the moment, there’s no reason to think that the report will be soft, but if it were, that wouldn’t bode well for Fed officials.
What does this mean for me?
Mortgage rates are on the rise this morning, but they’re still at very accommodating levels. If you’re in the market to buy a house or are interested in refinancing your current mortgage, right now is still a great time to do it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
Richmond Fed President Jeffrey Lacker spoke this morning at Charleston, West Virginia and stated that he would have dissented at the September meeting had he been a voting member of the FOMC. Lacker expressed concern that keeping rates too low for too long might cause inflation to eventually spike and bring in a recession.
Notable events this week:
Monday:
- ISM Mfg Index
Tuesday:
- Fedspeak
Wednesday:
- ADP Employment Report
- International Trade
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- Jobless Claims
- Long-Term Bond Announcements
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2dpGzPz
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