Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s a decent bit of economic data out today, but first, your daily mortgage rate forecast/advice.
Where are mortgage rates going?
Mortgage rates are poised to rise
A quarter point increase in the federal funds rate was all but guaranteed last week after a slew of Federal Reserve officials (including Fed Chair Janet Yellen) said that they expect a rate hike in the near term. According to the CME Group’s Fed Fund futures prices, which reflects the markets optimism about upcoming rate hikes, March has an 86.4% chance. Unless some unforeseen event causes the stock market to tank between now and next Wednesday, the FOMC will hike for the first time in 2017.
Click here to get today’s latest mortgage rates (Mar. 6, 2017).Treasury yields steadily rose all last week, and the 10-year yield is currently a little over ten basis points from where it was a week ago. Usually mortgage rates follow right behind the 10-year yield, but the past few weeks they’ve deviated from that long-held trend. I think, however, that this week we will see both of them continuing to rise.
In the Freddie Mac Primary Mortgage Market Survey (PMMS) from last Thursday, the average rate on a 30-year fixed rate mortgage was 4.10%. It’s reasonable to expect that rate to shoot up to somewhere around 4.20% this week. If we look further out into 2017, most economists agree that mortgage rates will be above 4.5% by the middle of the year, with some projecting as high as 4.80% by the time 2018 rolls around.
What does this mean for me?
While nearly everyone agrees that mortgage rates are poised for a steady climb, there will no doubt be moments where rates dip back down for a few days. Any borrowers trying to get the lowest rate possible should keep an eye out for those opportunities and lock as quickly as possible when they happen. If you’re trying to purchase a home or refinance your current mortgage and don’t have the luxury of waiting for the perfect moment, you’re best option is to lock in sooner rather than later.
Click here to get today’s latest mortgage rates (Mar. 6, 2017).Today’s economic data:
Fedspeak
Minneapolis Fed President Neel Kashkari will speak today at 3:00pm. It’s the last public speaking engagement from a Fed official before the FOMC meeting next Tuesday and Wednesday, but it’s basically a non-event for investors, as Janet Yellen hammered rate hike expectations home on Friday.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- International Trade
Wednesday:
- ADP Employment Report
- EIA Petroleum Status Report
- 10-Yr Note Auction
Thursday:
- Jobless Claims
- Import and Export Prices
Friday:
- Employment Situation
from Total Mortgage Underwritings Blog http://ift.tt/2mbwtEm
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