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?
The yield on the U.S. 10-year treasury note has been on the rise for over a week now and is currently up to 1.77%. That’s a mark that hasn’t been hit since the pre-Brexit days of early June. Mortgage rates often move in-step with the 10-year yield, but last week was a bit a of anomaly, with mortgage rates staying put as the 10-year yield steadily rose.
The Freddie Mac PMMS showed that the average rate on a 30-year fixed mortgage was 3.42%, just one basis point above the 2016 low. Now, rates may have remained flat last week, but it’s difficult to picture them continuing to stay that low in this week’s PMMS on Thursday. Of course, the good news is that they are basically climbing out from the lowest they’ve been all year, so it’s basically assured that they will remain at very low levels historically this week. In fact, many economists are predicting that mortgage rates are going to remain at generally low level throughout the rest of the year and well into 2017.
Click here to get today’s latest mortgage rates.
Making long-term mortgage rate predictions is an often fruitless task, but they have a point. Even if the Fed raises rates in December, it will almost certainly only be a quarter point hike, which will not be enough to send mortgage rates sprawling well above 4.00%. Could some unforeseen propel rates that high? Sure. All we can say is that right now it doesn’t seem likely.
Checking in with the Fed Fund futures we can see that the markets are giving December a 70.2% chance of a rate hike taking place. Those are some of the best odds we’ve seen all year, but there’s still plenty of time for that to change. The presidential election as well as a couple jobs reports could both influence what happens at that meeting.
Tomorrow we get the minutes from the September FOMC meeting. Financial market participants always enjoy parsing through those notes for any clues about when the Fed might raise rates. With three dissenters at the last meeting, the minutes have the potential to be more entertaining than usual.
Click here to get today’s latest mortgage rates.
What does this mean for me?
If I were on the market for a purchase or a refinance right now, I’d definitely make sure I have all my ducks in a row. While I don’t see rates surging up twenty basis points, there’s no denying that they are on the rise right now. That means that most borrowers will be better off acting sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
There is no significant economic data out today.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Nothing
Wednesday:
- Fedspeak
- JOLTS
- FOMC Minutes
Thursday:
- Jobless Claims
- EIA Petroleum Status Report
- Fedspeak
Friday:
- PPI-FD
- Retail Sales
- Consumer Sentiment
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2dIIBwS
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