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?
Wednesday’s bond-selloff continues
The yield on the U.S. 10-year treasury note is on the rise again today, hitting a new 52-week high at 2.45%. With OPEC agreeing to cut production, oil prices are moving higher, bringing with them stronger expectations for inflation. All of this is playing into the treasury sell-off and subsequent treasury yield rise. Of course, when treasury yields rise mortgage rates tend to follow, meaning that rates are headed higher this morning.
Rates are up in the Freddie mac PMMS
The Freddie Mac Primary Mortgage Market Survey (PMMS) got released at 10am this morning just as it does every week. The average rate on a 30-year fixed rate mortgage went up five basis points to 4.08% (0.5 points); the average rate on a 15-year fixed rate mortgage rose nine basis points to 3.34% (0.5 points); while the average rate on a 5-year ARM ticked up three basis points to 3.15% (0.4 points). Compared to the past two weeks, the rise in rates was somewhat modest, but at 4.08%, the 30-year fixed rate at a new 2016 high. Data for the report is collected early on in the week, so it does not have this most recent spurt of bond-selling priced into it. That means that next week’s report is primed to have rates higher once again, as long as the current situation doesn’t reverse itself.
Click here to get today’s latest mortgage rates.
Here’s what chief economist at Freddie Mac Sean Becketti had to say about mortgage rates this week:
“The 10-year Treasury yield remained flat despite an upward revision to third quarter GDP. The 30-year mortgage rate rose 5 basis points to 4.08 percent, rising a total of 51 basis points in three short weeks. With mortgage rates at the highest we’ve seen this year, borrowers are now backpedaling on refinance opportunities. The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity down 16 percent week over week.”
What does this mean for me?
Mortgage rates continue to climb. There is the potential for them to fall if tomorrow’s jobs report comes in weaker than expected. Overall I think that borrowers are better off locking in a rate on a purchase or refinance sooner rather than later.
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 11/26 came in at a higher than expected 268,000. At 17,000 more than the previous week, that’s a fairly sharp rise. That puts the 4-week moving average up 13,000 to 251,500.
Fedspeak
Cleveland Fed President Loretta Mester and Dallas Fed President Robert Kaplan both speak today.
ISM Mfg Index
The Institute for Supply Management’s manufacturing index is at 53.2 for November. Durable orders, new orders, and production all posted gains.
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/2fVRQrS
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