Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
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Where are mortgage rates going?
Mortgage rates flat this morning
Treasury yields are relatively flat this morning. The yield on the 10-year treasury note is at 2.38%, which is two basis points below Monday’s close. There’s really not much economic data out this morning, so the markets are holding steady ahead of the European Central Bank’s Thursday meeting. All signs right now point toward another six months of quantitative easing.
The pressure the ECB faces on Thursday is heightened after the Italian voters shot down a referendum over the weekend. In general, positive economic news both abroad and domestic causes mortgage rates to rise. With little economic data out this week, the ECB’s Thursday meeting takes center stage. But as long as nothing drastically unexpected unfolds, I don’t foresee it having too much of an effect.
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Fedspeak
With the FOMC meeting next Tuesday and Wednesday, Monday was the last day for fed officials to make public comments before we enter the pre-meeting blackout period.
Chicago Fed President Charles Evans commented that the economy seems ready for a rate hike, citing a “kind of tight” labor market. He then went on to express concerns over a Trump stimulus plan, stating that he hopes Trump is making it for the right reasons, stating “You don’t need stimulus; you do need a plan for roads and bridges.”
St. Louis Fed President James Bullard spoke along the same lines when he said “These policies should not be viewed as countercyclical measures… The economy is not in recession today.” Fed officials in general are wary of an over-aggressive Trump. They have their policy own moves that they would like to make, and their decisions are not made easier when they have to deal with someone who doesn’t share there views.
This give and take we’ve seen with the Fed and Trump so far is all part of the acclimation process. With President Obama, the mostly largely democratic FOMC didn’t have to worry nearly as much about monetary policy disagreements.
The fed fund futures is showing a 92.7% chance of a rate hike at next week’s FOMC meeting.
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Today’s economic data:
International Trade
The U.S. trade deficit grew to $42.6 billion in October. That’s significantly higher than the previous deficit reading of $36.4 billion.
Factory Orders
Factory orders rose by 2.7% in October. That’s exactly in line with economists’ expectations.
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/2gMWwkz
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