Welcome to the Total Mortgage Current Mortgage Rates Blog. Here’s your daily mortgage rate forecast/advice.
Where are mortgage rates going?
Treasury yields are falling again this morning for the third consecutive day. The yield on the U.S 10-year Treasury note began the week at 2.45% and is now at 2.34%. Typically, mortgage rates trail behind the 10-year yield, which would mean that they are also on the downturn. However, that has not been the case for the past two weeks. The Freddie Mac Primary Mortgage Market Survey (PMMS) yesterday showed that mortgage rates actually rose this week.
- The average rate on a 30-year fixed rate mortgage ticked up one basis point to 4.16% (0.5 points).
- The average rate on a 15-year fixed rate mortgage rose two basis points to 3.37% (0.5 points).
- The average rate on a 5-year adjustable rate mortgage dropped two basis points to 3.16% (0.4 points).
Clearly, the increases weren’t substantial, but the fact that the trend goes against conventional wisdom is noteworthy. Financial market participants are dealing with so much uncertainty, from the Fed, the White House, the French Election, etc., that things just aren’t operating as they normally do. It’s fair to wonder when this trend might reverse itself. With the Fed not really giving super clear forward guidance, the French Election not taking place until April, and the Trump Administration not exactly showing signs of settling down, it might be a while.
Click here to get today’s latest mortgage rates (Feb. 24, 2017).What does this mean for me?
Mortgage rates have basically been in a holding patter for the past two weeks. That’s good news for borrowers because rates are at historically low levels. So if you’re looking to refinance your current mortgage or purchase a new home, right now is a great time to do it.
Today’s economic data:
New Home Sales are Volatile
New home sales for January came in 26,000 lower than expected at 555,000. However, that’s still up from the previous reading of 535,000. Notably, November was revised 26,000 lower, putting the 3-month average down 23,000 to 255,000.
Consumer Sentiment
The consumer sentiment index for February is at 96.3. That’s a solid number that points toward optimism about the U.S. economy.
A Look Back:
Here are some key moments from this week:
- Fed officials came out stating that it might be appropriate to hike in March, echoing what Janet Yellen said last week,
- Treasury yields slid based on the latest French Election poll that showed right-winged candidate Marine Le Pen gaining traction with voters.
- The FOMC Minutes showed that Fed officials are grappling with much uncertainty. The report failed to bolster much confidence about a March rate hike.
Notable events this week:
Monday:
- Markets Closed for President’s Day.
Tuesday:
- Fedspeak
- PMI Manufacturing Index
Wednesday:
- Existing Home Sales
- Fedspeak
- FOMC Minutes
Thursday:
- Jobless Claims
- Fedspeak
- EIA Petroleum Status
Friday:
- New Home Sales
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2ml8tOO
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