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?
Yesterday was one of those wild days for the markets. With so many investors believing in a Clinton victory, one would have expected that the markets to go down in flames, à la the Brexit vote. That did happen briefly overnight on Tuesday, however, an unexpected rally began Wednesday morning and continued throughout the day. Trump’s more conservative tone during his victory speech seemed to have a soothing effect on investors, as they are now acting under the pretense that there will be a significant amount of fiscal stimulus.
I said yesterday that I wouldn’t be surprised if the rally was did an about face and stocks went reeling, but so far, that hasn’t happened. One of the most affected areas of the rally has been long-term government bonds. Investors engaged in a widespread sell-off, which has pushed prices down and yields up. The yield on the 10-year U.S. treasury note has surged all the way up to 2.12%. At the beginning of the week it was slightly above 1.80%. That’s no modest climb. In fact, it’s the fastest rise in three years, and puts the yield at a level it hasn’t been at since last January.
Mortgage rates usually follow in the footsteps of the 10-year yield, so it’s more likely than not that rates have spiked up a bit. That is indeed what the Freddie Mac PMMS is telling us this morning.
Check out today’s current mortgage rates here.
Freddie Mac PMMS
The Freddie Mac Primary Mortgage Market Survey came out this morning and it’s showing that mortgage rates rose. The average rate on a 30-year fixed rate mortgage is now at 3.57% (0.5 points); the average rate on a 15-year fixed rate mortgage is at 2.88% (0.5 points); and the average rate on a 5-year ARM is also at 2.88% (0.4 points). It’s important to acknowledge that data for this report is collected early on in the week and does not reflect current market conditions. There is the distinct possibility that mortgage rates are much higher than what the PMMS is showing. If the rally continues, next week’s report will be painting a much different mortgage rate picture.
What does this mean for me?
Mortgage rates are on the rise. At the moment it doesn’t seem like they will falter and slide back down whence they came, but anything can happen. The good news is that they are climbing out from levels close to all-time lows. My recommendation for anyone looking to refinance their mortgage or purchase a home is to lock in a rate as soon as possible.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Jobless Claims
Jobless claims for the week of 11/5 came in at 254,000. That’s 11,000 lower than last week, putting the 4-week moving average at 259,750.
Fedspeak
St. Louis Fed President James Bullard will speak today.
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 https://www.totalmortgage.com/blog/mortgage-rates/current-mortgage-rates-for-thursday-november-10-2016/34425
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