Happy Friday, and welcome to the Total Mortgage 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?
Trump market rally pushes rates higher
Mortgage rates are headed higher. That’s something that we’ve been expecting, and has happened on a gradual level over the past few weeks, but the market rally after the election really jolted rates into significantly higher territory. Even data from before the rally has rates higher. The Freddie Mac Primary Mortgage Market Survey (PMMS), whose data is gathered early on in the week, had mortgage rates up from the previous week.
The average rate on a 30-year fixed rate mortgage was up three basis points to 3.57% (0.5 points). That’s the highest it’s been since early June. The same goes for the average rate of the 15-year fixed and the 5-year ARM, which both came in at 2.88% this week (0.5 points and o.4 points, respectively).
Check out today’s current mortgage rates here.
With expectations for Trump to cut taxes and spend big on infrastructure projects, investors have been ditching long-term bonds, driving the price down and the yield up. One such bond–the 10-year treasury note–happens to be the best indicator of where mortgage rates are headed. On Wednesday, the yield saw the biggest one day jump in over three years.
That upward trajectory continued through Thursday, placing the yield at 2.15% today (bond markets are closed today because of Veteran’s Day). The yield started the week just a touch above 1.80%, making it a nearly forty basis point rise over the past few days. That’s no small tick upward, and unfortunately for borrowers, it means mortgage rates are moving on up.
It’s unlikely that they will surge forty basis points, but they could easily be up in the 3.70%, maybe even 3.80%, in next week’s PMMS. The last time the average rate on a 30-year fixed rate mortgage was above 3.80% in the PMMS was in January.
December rate hike
A Trump victory was not supposed to create a market rally. It was generally seen as bad for the markets, which meant it was a threat to a December rate hike. As it happened, the markets rallied and the odds for a rate hike in December (76.3% according to the Fed Fund futures) are basically unchanged from where they were at the start of the week.
What does this mean for me?
Mortgage rates are on the rise. We’re dealing with a lot of uncertainties right now and there’s no telling when they will settle down. My recommendation for anyone thinking about purchasing a home or refinancing their current mortgage is to do it sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
Federal Reserve Vice Chair Stanley Fischer will give a speech today at 11:00am.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- US Presidential Election
- Fedspeak
- JOLTS
Wednesday:
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2eZsVRd
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