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?
The markets have been on a wild ride the past week and half, and as of right now, treasury yields are still way, way up. The yield on the 10-yearis at 2.33%, just two basis points below the 52-week high. Mortgage rates decided to tag along this time, and are also significantly higher than where they were last week.
In the Freddie Mac Primary Mortgage Market Survey (PMMS), the average rate on a 30-year fixed rate mortgage shot up a staggering 37 basis points to 3.94% (0.5 points). The average rate on a 15-year fixed rate mortgage went up 26 basis points to 3.14% (0.5 points), while the average rate on the 5-year ARM jumped 19 basis points to 3.07% (0.4 points).
Here is what Sean Becketti, chief economist at Freddie Mac, had to say about the week that was for mortgage rates:
“Last week’s election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market. This week, the verdict is in—over the last two weeks the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”
Fed Fund Futures
The Federal Reserve’s Open Market Committee (FOMC) meets in a little less than a month to decide whether or not their should be an adjustment to the nation’s monetary policy. As of right now, nearly everyone (95.4% chance according to the fed fund futures) believes that they will raise the federal funds rate by a quarter percent to the 50-75 bps range.
What does this mean for me?
Mortgage rates saw their biggest weekly jump in over 3 years this week. Having to lock in a rate at a higher level than what you could have a couple weeks ago is a hard pill to swallow, but the fact is that today’s rates are still extremely low from a historical perspective. If you have the time, you can always wait to see if rates will drop back down, but it doesn’t seem like that is going to happen anytime soon.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
A handful of fed officials are speaking today:
- James Bullard at 5:30am
- Esther George at 9:30am
- William Dudley at 9:35am
- Robert Kaplan at 1:30pm
- Jerome Powell at 9:45pm
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Retail Sales
- Fedspeak
Wednesday:
- PPI-FD
- Industrial Production
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- Consumer Price Index
- Housing Starts
- Jobless Claims
- Philly Fed Business Outlook
- Fedspeak
Friday:
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2f8hshj
No comments:
Post a Comment