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?
The big news this morning is the European Central Bank’s decision to continue their bond-buying program for another nine months, albeit at $60 B/month as opposed to $80 B. Financial market participants had been keenly watching this meeting, and some were surprised by the reduction of the size of the bond-buying program. However, ECB President Mario Draghi is steadfast in his position that this does not amount to any sort of tapering, stating, “There is no question about tapering. Tapering has not been discussed today.” He went on to explain that the reduction is a response to a weakening deflation risk.
Click here to get today’s latest mortgage rates.
U.S. stocks are basically flat this morning. The yield on the 10-year treasury note is at 2.39%, which is five basis points above where it closed yesterday. Mortgage rates typically go wherever the 10-year yield does, so they’re rising modestly this morning. After any major bank decision there is usually a swing one way or another, but that doesn’t mean that momentum will stick. With the ECB decision over, investors now turn toward next week’s FOMC meeting on Tuesday and Wednesday. The Fed is overwhelmingly expected (fed fund futures have it at a 07.2% chance of happening) to raise the benchmark federal funds rate by a quarter point, putting it at 0.5-0.75%.
What does this mean for me?
Mortgage rates are primed to head higher. Anyone who hasn’t refinanced yet but is thinking of doing so should try to lock in a rater as soon as possible. If you are looking into purchasing a home, you’re a little less vulnerable to rising rates, but you’re still most likely better off acting sooner rather than later.
Today’s economic data:
Jobless Claims
Applications for U.S. unemployment benefits dropped by 10,000 for the week of 12/3 to 258,000. The four-week moving average is up 1,000 to 252,500.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- ISM Non-Mfg Index
- Fedspeak
Tuesday:
- International Trade
- Factory Orders
Wednesday:
- JOLTS
- EIA Petroleum Status
Thursday:
- Jobless Claims
Friday:
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2hozeOS
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