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?
FOMC raises federal funds rate but mortgage rates fall
The Federal Reserve’s Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate by a quarter point yesterday to 0.75%-1.00%. That was the second time in three months, and only the third time since the financial crisis that the Fed raised the nation’s benchmark interest rate. The move was widely anticipated by investors, so there wasn’t much hoopla when the announcement broke. The major U.S. stock market indexes all rose and finished out the day in the positive.
Click here to get today’s latest mortgage rates (Mar. 16, 2017).The day wasn’t completely devoid of surprises, though. Many financial market participants had begun to expect a more aggressive tightening path from the Fed in their dot-plot chart. There had been calls for possibly four hikes in 2017, 2018, and 2019. However, the Fed did not wind up adjusting their previous position, which resulted in a rally for the 10-year Treasury note, pushing down bond yields. Mortgage rates typically follow in the direction of the 10-year yield and similarly declined by several basis points. Some of those losses have been gained back today, but both mortgage rates and the 10-year yield are still below where they started the day yesterday.
Freddie Mac PMMS
The Freddie Mac Primary Mortgage Market Survey got released moments ago and it revealed that mortgage rates rose this week.
- The average rate on a 30-year fixed rate mortgage went up nine basis points to 4.30% (0.5 points).
- The average rate on a 15-year fixed rate mortgage rose eight basis points to 3.50% (0.5 points).
- The average rate on a 5-year adjustable rate mortgage ticked up five basis points to 3.28% (0.4 points).
Now, it should be noted that data for the survey is collected early on in the week and as such does not reflect the post-rate hike decision environment. Chief economist at Freddie Mac Sean Becketti does mention that mortgage rates will be facing much upward pressure as we move through 2017.
What does this mean for me?
Mortgage rates unexpectedly fell yesterday. There was always a chance for something to happen, which is why it’s important to stay on top of rates. Rates are still down from yesterday’s open, and are still at historically low levels, so right now is a great time for anyone looking to purchase or refinance.
Today’s economic data:
Housing Starts
Housing starts rose in February from a prior revised reading of 1.251 M to 1.288 M. Housing permits declined from a prior revised reading of 1.293 M to 1.213 M.
Jobless Claims
Jobless claims didn’t change much from last week, coming in 2,000 lower at 241,000. The four-week moving average is now 237,250.
Philly Fed Business Outlook Survey
The Philly Fed Index came in at 32.8. That’s above the consensus for 30.0. It’s another strong report for the U.S. manufacturing sector.
Click here to get today’s latest mortgage rates (Mar. 16, 2017).Notable events this week:
Monday:
- New Atlanta Fed President
Tuesday:
- FOMC Meeting Begins
- PPI-FD
Wednesday:
- Consumer Price Index
- Retail Sales
- Empire State Mfg
- Housing Market Index
- EIA Petroleum Status Report
- FOMC Meeting Ends/Yellen Press Conference
Thursday:
- Housing Starts
- Jobless Claims
- Philly Fed Business Outlook Survey
Friday:
- Industrial Production
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2m5hOxE
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