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?
Freddie Mac PMMS has rate higher
The Freddie Mac Primary Mortgage Market Survey (PMMS) came out today and unsurprisingly it showed that mortgage rates rose this week. The average rate on a 30-year fixed rate mortgage went up seven basis points to 3.54% (0.5 points); the average rate on a 15-year fixed rate mortgage went up six basis points to 2.84% (0.5 points); and the average rate on a 5-year ARM rose three basis points to 2.87% (0.5 points).
Here’s what chief economist at Freddie Mac, Sean Becketti, had to say about the week for mortgage rates:
“A jump last week in the PCE — the price index tracked most closely by the Fed — raised the prospect that inflation might not be completely dead after all. Investors reacted by driving the yield on the 10-year Treasury to its highest point since June.”
Click here to get today’s latest mortgage rates.
FOMC keeps fed funds rate unchanged
The Federal Open Market Committee decided to keep the federal funds rate unchanged yesterday. The decision came in a written statement at the end of their two day meeting on monetary policy (the seventh meeting out of eight for the year). With the presidential election less than a week away, no one was expecting that they would raise rates.
This meeting was more about how they would set the stage for December. While the Fed may have put a more upbeat tone on their inflation outlook, they certainly didn’t come out and firmly signal that a December rate hike will happen (as they did with the December meeting last year). Initially, the statement caused the Fed Fund futures to rise all the way up to an 80% chance of a quarter-point rise in December, but it has since dropped down to around 67%. Despite what many are saying, it’s by no means a guarantee.
The next big threat to both mortgage rates and December’s rate hike chances is tomorrow’s monthly jobs report.
What does this mean for me?
Mortgage rates rose this week, but as I’ve been saying for a while now, they’re still at very accommodating levels. If you’re in the market for a refinance or a purchase, right now is a great time to lock in a rate.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Jobless Claims
Applications for U.S. unemployment benefits for the week of 10/29 came in at 265,000. That’s 7,000 higher than the prior reading, and puts the four week moving average at 257,750.
Notable events this week:
Monday:
- Personal Income and Outlays
Tuesday:
- ISM Mfg. Index
- FOMC Meeting Begins
Wednesday:
- EIA Petroleum
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
Friday:
- Employment Situation
- International Trade
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2f50OjZ
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