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?
Mortgage rates started the week off on a downturn yesterday. Foreign investors returned to the treasury market on Monday, pushing prices up and yields down. The yield on the 10-year treasury note (the long-term treasury yield most closely tied to mortgage rates) closed yesterday at 2.31%. A positive third quarter GDP estimate has moved that yield up to 2.34% this morning.
That means that mortgage rates are up slightly from where they were yesterday, but still not back to their peak position at the end of last week. With a volatile market, we can expect these kinds of ups and downs to occur fairly regularly over the next weeks (months?) as investors grapple with the notion of a Trump presidency.
On that note, Business Insider just published an article stating that Trump met with John Allison, the former CEO of the bank BB&T and the libertarian think tank the Cato Institute, potentially vetting him for Treasury secretary. Allison is a staunch critic of the Federal Reserve, writing in 2014 that he is in favor of abolishing the central bank, which he blames for many of the economy’s problems. Not only that, but he is also in favor of going back to the gold standard and would seek to repeal banking regulations. If Janet Yellen wasn’t worried before, she certainly should be now. Of course, one meeting doesn’t mean anything, but it’s definitely noteworthy.
December rate hike still looking good
For now, though, the Federal Reserve still exists and it still has to decide in two weeks what to do about the federal funds rate. As of right now, the fed funds futures are giving a quarter point raise an 98.2% chance of happening. It’s hard to argue with those odds.
What does this mean for me?
Mortgage rates are lower than where they were at the end of last week, but they’re still poised to move much higher. I still think it’s best for anyone looking to purchase a home or refinance to act sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
GDP is up
The second estimate for third quarter GDP is in this morning at 3.2%. That’s just above the consensus for 3.1% and signals for stronger than expected growth in the second half of the year. Consumer spending is up and inventory growth is down. It’s good news for the U.S. economy as we head into the holiday shopping season.
Fedspeak
New York Fed President William Dudley and Fed Governor Jerome Powell both speak today.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Nothing
Tuesday:
- GDP
- Fedspeak
Wednesday:
- ADP Employment Report
- Personal Income and Outlays
- Fedspeak
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Fedspeak
- ISM Mfg Index
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2gfMKa6
No comments:
Post a Comment