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?
Unless you’ve been trekking through the woods on a solo excursion this past week, you’re no doubt aware that mortgage rates have taken a hit recently. It seemed like we might get some relief yesterday, as treasury yields declined for a bit, but they eventually picked back up and ended at a level not seen since the beginning of last January.
Tomorrow at 10am sharp the Freddie Mac Primary Mortgage Market Survey (PMMS) will get released, and we’ll find out how lenders were affected across the nation. All signs are pointing toward one of the largest, if the not the largest, single weeks spike of the year. How many basis points are we talking? It’s hard to say for sure.
The best market indicator we have is the yield on the U.S. 10-year treasury note. Typically, mortgage rates trail behind that yield. As stated, treasury yields have skyrocketed over the past week, with the 10-year yield up nearly 40 basis points. While I don’t expect mortgage rates to surge by quite that much, I do think there is the potential for a 20-30 basis point increase. That would put the average on the 30-year fixed rate around 3.77%-3.88%.
What does this mean for me?
Buyers aren’t faced with an easy decision right now. With rates shooting higher in a volatile market, you have to decide if you want to bank on rate falling down in the near future, or lock now hoping that they’ll continue rising. No one can fault you for either position, as the future is far from certain. There are plenty of borrowers on both sides of the fence here. You just have to come to terms with the amount of risk you can afford to take, and make the decision that feels best.
Click here to get today’s latest mortgage rates.
Today’s economic data:
PPI-FD
Producer price readings came in unchanged for October. Food prices dropped 0.8%, and service prices fell 0.3%. A 2.5% rise in energy prices was the only reason the headline reading didn’t fall into the negative. Year on year producer prices are now at 0.8%.
Industrial Production
Industrial production is also unchanged for October. Manufacturing is up 0.2%, and the capacity utilization rate is now at 75.3%. Vehicle production and business equipment both had positive showings in October, with gains of 0.9% and 0.2%, respectively.
EIA Petroleum Status Report
For the week of 11/11:
- Crude Oil: 5.3 M barrels
- Gasoline: 0.7 M barrels
- Distillates: 0.3 M barrels
Fedspeak
Philadelphia Fed President Patrick Harker will give a speech at 5:30pm today.
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/2fXEzzT
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