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 are on the rise for the third straight day. The yield on the 10-year U.S. Treasury note is up to 2.54%. Mortgage rates usually follow the lead of the 10-year yield, so that means rates have headed higher. The big news yesterday was, of course, the Dow breaking 20,000 for the first time ever. It’s still about a hundred points above that mark at the time of writing. President Trump has so far been able to sustain optimism about his pro-growth plans for the economy.
Mortgage rates rise in Freddie Mac PMMS
For the first time in 2017, the Freddie Mac Primary Mortgage Market Survey showed that mortgage rates ticked up. The average rate on a 30-year fixed rate mortgage shot up ten basis points to 4.19% (0.4 points); the average rate on a 15-year fixed rate mortgage rose six basis points to 3.40% (0.4 points); while the average rate on a 5-year ARM was the exception, ticking down by one basis point to 3.20%.
Here is what Chief Economist at Freddie Mac Sean Becketti had to say about the matter:
“The 10-year Treasury yield increased more than 10 basis points this week. The 30-year mortgage rate moved up as well to 4.19 percent, a 10 basis point jump. This week marks the first increase in the mortgage rate since December 29. The 2.8 percent decline in existing home sales in December is a reminder of the lack of homes for sale. According to the National Association of Realtors, supply is at its lowest level since 1999, a factor that should support higher house prices regardless of the oscillations of the mortgage rate.”
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates are on the rise. While I think that there will be moments of volatility that cause rates to drop down several points, those moments are extremely hard to predict and time. With rates most likely on the rise long-term, my recommendation for anyone thinking about refinancing their current mortgage or locking in a rate on a purchase is to make a decision sooner rather than later.
Today’s economic data:
International Trade
The U.S. trade deficit barely moved in December, going from $65.3 B to $65.0 B.
Jobless Claims
Jobless claims spiked up to 259,000 for the week of 1/21/17. That’s 22,000 higher than the prior revised reading. The four week moving average is now 245,500. It’s not unlikely for holiday weeks (MLK) to see strong fluctuations.
New Home Sales
New home sales dropped in December from 598,000 to 536,000. That’s well below the consensus for 593,000.
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/2kx2uEK
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