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?
Last week of 2016 trading begins
The last week of trading for 2016 begins today. The yield on the 10-year treasury note (the best market indicator of where mortgage rates are headed) began the day with a three basis point spike up to 2.58%, but has since retreated back down to 2.57%. That means mortgage rates are most likely headed flat to slightly higher. The Dow is continuing to surge toward the 20,000 mark, getting as close as 19,662 this morning.
Some investors put a lot of weight on what happens in the post-Christmas trading week, while others don’t buy into the superstition. Whatever the case may be, there is very little economic data to be released this week, so investors will have to look elsewhere for hints on where to move.
The Fed
The Federal Reserve’s Federal Open Market Committee talked a strong game at their last meeting a few weeks ago, and now the speculation is on for when they will raise their benchmark interest rate next. The first meeting of 2017 takes place February 1, but the fed fund futures isn’t giving much thought to that, putting it at a 4% chance of a rate hike. March currently has about a 25% chance, while June is the first meeting of 2017 with over a 50% chance.
There are still many unknowns that will play into the Fed’s decision in the coming year, the greatest of which is how the economy will react to the incoming administration. One important factor to consider is Trump’s ability to pick candidates for two vacant seats on the FOMC as soon as he takes office.
What does this mean for me?
Mortgage rates might have slowed their pace for today, but they are certainly still heading higher. In this situation, it makes sense for anyone looking to purchase or refinance to do it sooner rather than later.
Today’s economic data:
S&P Case-Shiller HPI
The S&P/Case-Shiller National Home Price Index for October is showing some healthy numbers. Home prices are up 0.1% month over month, putting them at 5.1% year over year.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Markets Closed
Tuesday:
- S&P Case-Shiller HPI
Wednesday:
- Pending Home Sales Index
Thursday:
- International Trade in Goods
- Jobless Claims
- EIA Petroleum Status Report
Friday:
- Chicago PMI
from Total Mortgage Underwritings Blog http://ift.tt/2hq2g3K
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