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 only economic data released today with any significance to mortgage rates is the consumer prices index. That report had some good and some bad in it (details below), but overall it did little to sway rates one way or another. The yield on the U.S. 10-year treasury note, which has long been the best market indicator of where mortgage rates are headed, has been on a mini-roller coaster ride the past several days.
The peaks and valleys have remained fairly subdued, though, keeping the yield in a pretty tight range. This morning’s CPI report, since it showed even the slightest bit of strength, caused long-term treasury yields to rise. Right now, the yield on the 10-year treasury note is trading at 1.77%.
What’s the takeaway for mortgage rates? Well, rates rose last week in the Freddie Mac PMMS, and since then, treasury yields have gone up. That means that we’re most likely going to see rates rise again in this week’s PMMS on Thursday. We hear from various Fed officials as the week progresses, so there’s always the potential that we’ll get some market moving information in one of those talks. Of course, if I were a betting man, I wouldn’t put my money on it.
Click here to get today’s latest mortgage rates.
What does this mean for me?
It’s no secret that mortgage rates are continuing to hover around historically low levels. Everyone has their own unique situational factors, but I think that generally speaking, right now is a great time to purchase or refinance.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Consumer Price Index
The Bureau of Labor Statistics is reporting this morning that the consumer price index rose 0.3% in September. That puts the year over year change at 1.5%. CPI less food and energy had a monthly change of 0.1% in September, making the year over year change 2.2%. The latter is considered the core reading, and at 2.2%, it’s down from the previous month’s level of 2.3%. Every piece of economic data has the potential to influence the Fed’s decision in December, and one would expect this report doesn’t do much to dissuade officials from voting to raise rates.
Inflation is a hotly contested issue at times. If you’re interested in digging a little deeper, check out this article from the LA Times.
Notable events this week:
Monday:
- Empire State Mfg
- Industrial Production
- Fedspeak
Tuesday:
- Consumer Price Index
Wednesday:
- Housing Starts
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- Jobless Claims
- Philadelphia Fed Business Outlook Survey
- Existing Home Sales
- Fedspeak
Friday:
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2dkQ97j
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