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?
All of the major market indexes are down slightly this morning as they await the conclusion of the FOMC meeting. The FOMC meeting did kick off this morning but nothing will be revealed to investors until the meeting concludes tomorrow afternoon with a written statement (2:00pm) and a Janet Yellen press conference (2:30pm).
Click here to get today’s latest mortgage rates (Mar. 14, 2017).Unless you’ve been hiding under the proverbial rock for the past few weeks, you know that it’s virtually guaranteed that the Fed will opt to raise the nation’s benchmark interest rate–the federal funds rate–by 25 basis points (0.25%) to 0.75%-1.00%. This will be the first rate hike of 2017, and only the third since the current cycle began back in December of 2015. The last time the federal funds rate was at 1.00% was in later October 2008.
One talking point that has been repeatedly brought up over the past few days is the possibility that the Fed will put out a more hawkish dot-plot. The dot-plot is used by Fed officials to indicate where they think rates will be in the future, and many experts are claiming that some officials will have four rate hikes on the table in 2018 and 2019.
With a rate hike tomorrow a near guarantee investors are looking for forward guidance from the Fed, and a more aggressive pace in the dot-plot would certainly have an effect on the markets.
Of course, financial market participants will take a fine tooth comb through the written statement for any clues, and will be keenly watching to see if Janet Yellen offers up any further insight during her Q & A with reporters.
Click here to get today’s latest mortgage rates (Mar. 14, 2017).The biggest threat to mortgage rates tomorrow is a more hawkish than expected FOMC. If the written statement paints a picture of a strong economy, and the dot-plot shows a quickened rate hike pace, mortgage rates could rise by several basis points.
What does this mean for me?
The clock is ticking for anyone who is looking to lock in a mortgage rate before the FOMC comes out with their decision tomorrow. There is definitely a threat that mortgage rates will spike upon a more hawkish message from the Fed. Mortgage rates still have a ways to go before they get anywhere close to levels that are considered high historically, but they are rising.
Today’s economic data:
FOMC Meeting Begins
The FOMC meeting starts today and ends tomorrow afternoon.
PPI-FD report better than expected
Producers prices beat the consensus across the board. PPI-FD month over month came in at 0.3%, which is 0.2% above projections. PPI-FD less food and energy came in at 0.3%, which is 0.1% above projections. Finally, PPI-FD less food, energy, and trade services came in at 0.3%, which is also 0.1% above projections. The Fed always keeps a close eye on inflation data and this is the type of the report that is needed for them to feel confident in a faster rate hike approach.
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/2mnZ0pq
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