Happy Friday, and 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?
Treasury yields and mortgage rates slid this morning after fourth-quarter GDP came in at a slower than expected 1.9%.
Things had really picked up in the third quarter of 2016 (3.5% GDP), but no one had expected that type of momentum to continue. It was more a matter of how much the economy would slow down. As it happened, the pace slowed more than expected. The outlook for 2017 is very dependent on who you are talking to.
The most devout Trump supporters are still preaching for a strong year of growth fueled by tax cuts, looser regulations, and infrastructure spending. On the other hand, you have the skeptics who claim all of those things are easier said than done. It’s a mixed bag, and one that makes it difficult to clearly see where we are headed.
Mortgage rates may have moved down a few notches, but they are still several basis points higher from where they started the week. Looking ahead to next week, we have the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday. No one is expecting that they will raise the federal funds rate, but it will be the first Fed statement since Donald Trump became president.
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates moved higher this week.
Today’s economic data:
GDP slows
The U.S. economy slowed in the fourth quarter of 2016 to 1.9%. That’s slightly below expectations for 2.2%. The drop comes after a higher than expected third quarter GDP at 3.5%. President Trump has been calling for a growth target of 4%, but many economists are skeptical that will happen.
Consumer Sentiment
Consumer sentiment for January is at a solid 98.5. That’s four tenths higher than the prior reading.
Durable Goods Orders
Durable goods dropped 0.4% in December. New orders year over year are now at 1.6%.
Key moments this week:
- Treasury yields steadily rose for majority of the week
- Dow closed at 20,000 on Wednesday for the fist time ever
- Mortgage rates rose for the first time in 2017
- GDP comes in low
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Nothing
Tuesday:
- PMI Manufacturing Index
- Existing Home Sales
Wednesday:
- EIA Petroleum Status Report
Thursday:
- International Trade
- Jobless Claims
- New Home Sales
Friday:
- Durable Goods Orders
- GDP
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2ktLlg7
No comments:
Post a Comment