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?
Treasury yields and mortgage rates are continuing to face upward pressure as we march on with the week. It’s been nearly two weeks now since treasury yields began their climb, and the 10-year is quickly approaching 1.80%. Just two Fridays ago the 10-year yield was 1.54%. What has been causing the steady rise? It seems that more and more financial market participants are coming around to the idea of a rate hike in December. As that happens, portfolios are becoming more balanced and treasury yields rise.
Unfortunately for borrowers, mortgage rates typically follow in the footsteps of the 10-year yield, meaning that rates moving higher. On the positive side, mortgage rates are not exhibiting quite as much energy as the 10-year yield.
We’ll get a feel for the national mortgage market tomorrow when Freddie Mac releases their Primary Mortgage Market Survey (PMMS). Despite soaring treasury yields, rates remained flat in last week’s report, with the average rate on a 30-year fixed rate coming in at 3.42%. That’s just one basis point above the 2016 low of 3.41%. With treasury yields continuing to climb this week, I expect that mortgage rates will be up several basis points from last week’s position.
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates are on the rise right now but that doesn’t change the fact that they are still at extremely low levels from a historical perspective. If you’re on the market for a purchase or a refinance, rates are still favorable. I would just recommend acting sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
New York Fed President William Dudley spoke this morning with the Business Council of New York State in Albany. He expressed that he’s less concerned about inflation as he is with what he feels is “slack” in the labor market. He went on to say that: “The best thing that could happen for the U.S. economy (is) to grow at a moderate rate for the next five to 10 years and the unemployment rate to stay around 5 percent or lower.”
Kansas City Fed President Esther George also spoke this morning, but her prepared remarks did not comment on the future of U.S. monetary policy. Rather, she spoke about the growing need for banks to prepare for cybersecurity threats.
JOLTS
According to data out from the Labor Department, there were 5.443 million job openings in August. That’s down from the previous month’s reading of 5.871 million.
FOMC Minutes
The minutes from September’s FOMC meeting, in which Fed officials voted to keep rates unchanged, is set to be released this afternoon at 2:00pm.
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/2dclBjv
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