Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
Where are mortgage rates going?
Mortgage rates remain lower
The week ahead isn’t overflowing with influential economic data, but we do get to hear from several Fed officials for the first time since they’re decision to raise the federal funds rate by a quarter point last Wednesday. Already this morning Chicago Fed President Charles Evans went on Fox Business News for an interview, stating that the U.S. economy is definitely headed for two more rate hikes this year–potentially three more. Here it is in his own words:
“Three is entirely possible… As I gain more confidence in the outlook I could support three total this year. If inflation began to pick up, that would certainly solidify (a three rate hike outlook). It could be three, it could be two, it could be four if things really pick up.”
Right now the CME Group’s Fed Fund futures prices, which reflects market optimism about upcoming rate hikes, has June as the next most likely candidate for a rate increase, with a 54.7% chance. Currently, investors only have two more rate hikes priced in to 2017. Just as Evans makes it clear that he would adjust his position if the data deems it necessary, the markets make no point to stick to their current projections.
Click here to get today’s latest mortgage rates (Mar. 20, 2017).The markets are prone to manipulation in the weeks after an FOMC meeting, as investors are listening closely to the Fed and watching the data come out in an effort to gleam any information on the next rate adjustment. Everyone wants to be the first to get in on the action, and a group- think/snowball effect is not out of the question.
It’s important to note that whatever course gets charted over the next week(s) is not set in stone and could very well change on a dime if the right words are spoken from the Fed or if a key piece of data necessitates it.
Whatever the case may be with the Fed, it’s always important for borrowers to keep an eye out for weekly mortgage rate swings. The yield on the 10-year U.S. treasury note is the best market indicator of where mortgage rates are headed, with rates usually trailing behind the yield.
Last week was interesting in that the Fed came off less hawkish than expected in their FOMC statement and dot-plot, and as such caused the 10-year yield and mortgage rates to decline. There was a brief rally during overnight trading, but the 10-year yield since dropped down to post FOMC meeting lows.
Click here to get today’s latest mortgage rates (Mar. 20, 2017).Mortgage rates have been climbing higher for the past few weeks in the Freddie Mac Primary Mortgage Market Survey (survey comes out every Thursday at 10am), but given the recent developments in the bond market, it seems that they are going to take a bit of a dive in this week’s survey. That is unless something changes over the next 48 hours. However, given the sparse amount of economic data that will be released today and tomorrow, it’s doubtful that will happen.
What does this mean for me?
Mortgage rates fell last Wednesday, and they’re continuing to remain at those levels. That means right now is a great time for anyone looking to purchase a home or refinance their current mortgage.
Today’s economic data:
- Chicago Fed President Charles Evans has two speaking engagements today.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Fedspeak
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Fedspeak
- Jobless Claims
- New Home Sales
Friday:
- Fedspeak
- Durable Goods Orders
- PMI Composite Flash
from Total Mortgage Underwritings Blog http://ift.tt/2n6sKKm
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