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?
Rates surge in Freddie Mac PMMS
Wow. The folks over at Freddie Mac just released their Primary Mortgage Market Survey (PMMS) and it’s a doozy. We knew that mortgage rates were going to spike after the wild bond sell off, but it wasn’t clear if they would match the 40+ basis point rise that treasury yields experienced. Well the data is in and it’s showing that, this time, mortgage rates decided to come along for the ride.
The average rate on a 30-year fixed rate mortgage rose a whopping 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 a 5-year ARM ticked up 19 basis points to 3.07% (0.4 points). Mortgage rates haven’t seen a single week spike like this since June 2013, and they haven’t been at these levels since last January.
Janet Yellen speaks
The Fed Chair read prepared remarks before congress this morning. Everyone is talking about her statement that a rate hike could happen “relatively soon.” She went on to say that “The case for an increase had continued to strengthen.” This was the first time Yellen had spoken publicly since the presidential election. Trump had been extremely critical of the Fed throughout his campaign, going so far as to say that Yellen should be “ashamed of herself” for keeping rates low (for what he think were political reasons). Unsurprisingly, Yellen did not make any statements aimed toward Trump.
What does this mean for me?
Rates are way up from last week. It doesn’t seem like they are going to plummet down anytime soon, but I say that with some hesitation. Stock markets are extremely volatile right now and after last week, it’s clear that anything is possible. I would recommend locking in a rate while they’re still below 4.00%, but I can certainly understand why some borrowers want to wait and see if rates drop. If you have the time, that might be a good option.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Consumer Price Index
The consumer price index rose 0.4% in October, putting it at a year over year change of 1.6%. CPI less food and energy rose 0.1% in October, and 2.1% year over year. The energy sector
Housing Starts
Housing starts came in at 1.323 M for October. That’s a 25.5% increase since the last reading. Permits came in at 1.229 M.
Jobless Claims
Applications for U.S. unemployment benefits dropped down their lowest level in 43 years this week, at 235,000. That’s an 11.6% drop from the previous week. They were expected to rise slightly, but the decline bolsters the chances of a December rate hike.
Philly Fed Business Outlook
The Philly Fed general business conditions index came in at 7.6 for November. That’s not the best headline reading but the details show that there is reason to be optimistic.
Fedspeak
Janet Yellen spoke before congress today. See above for more details.
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/2fZz7bY
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