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 eyes were on President Donald Trump last night as he went before a joint session of Congress last night for the first time.
Financial market participants were eagerly anticipating that he would dole out some details on his economic plans, tax overhaul, healthcare reform, and business deregulation strategy, but they were left waiting in vain, as Trump didn’t give any specifics.
Instead, he chose to double down on the optimistic rhetoric, speaking in vague terms about the above mentioned topics. Despite the lack of details, the speech was fairly well received, as Trump took a more diplomatic tone with his delivery.
Click here to get today’s latest mortgage rates (Mar. 1, 2017).As it happened, Donald Trump wasn’t needed to kick the markets into gear. New York Fed President went on CNN yesterday evening and took it upon himself to bolster market sentiment about the March rate hike, stating that an increase in the federal funds rate seems “a lot more compelling.” He elaborated further:
“It seems to me that most of the data we’ve seen over the last couple months is very much consistent with the economy continuing to grow at an above-trend pace, job gains remain pretty sturdy, inflation has actually drifted up a little bit as energy prices have increased.”
Incredibly, these comments caused many investors to do an about face and rush into the pro-March camp. Prior to Dudley’s interview, the CME Group’s Fed Fund futures had the chances of a March rate hike at 35.4%. After the interview, it surged up to 70.9%! That’s a staggering increase, and it’s quite the change of circumstances from where we were just a few weeks back.
Click here to get today’s latest mortgage rates (Mar. 1, 2017).All of this is putting upward pressure on mortgage rates. Whether or not this is a sustained rise is something that only time will tell.
What does this mean for me?
Mortgage rates are back on the rise. What you do right now depends on how much of an appetite for risk you have. If you have the time and the stomach for it, then by all means try and wait to see if you can get in on the next dip down. If that’s not something that you feel comfortable with, locking in a rate before rates continue to climb is a wise option. After all, mortgage rates are still at very low levels historically.
Today’s economic data:
Personal Income and Outlays
The PCE price index rose 0.4% in January, putting it at 1.9% year over year. That’s just a touch below the Fed’s target of 2.0%. As long as the data keeps coming in like this, March will continue to have a real chance at a rate adjustment.
ISM Mfg Index
The ISM manufacturing index rose 1.7 points to 57.7 in February. It’s a strong report, and it could mean good things to come for the U.S. factory sector.
EIA Petroleum Status Report
For the week of 2/24:
- Crude oil: 1.5 M barrels
- Gasoline: -0.5 M barrels
- Distillates: -0.9 M barrels
Beige Book
The Fed’s Beige Book, which contains anecdotal evidence about the state of the economy, will be released at 2:00pm today.
Fedspeak
- Dallas Fed President Robert Kaplan will speak today at 12:30pm.
- Fed Governor Lael Brainard will give a talk this evening at 6:00pm.
Notable events this week:
Monday:
- Durable Goods Orders
- Fedspeak
Tuesday:
- GDP
- International Trade in Goods
- S&P Corelogic Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
- Fedspeak
Wednesday:
- Personal Income and Outlays
- ISM Mfg Index
- EIA Petroleum Status Report
- Beige Book
- Fedspeak
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Fedspeak
- ISM Non Mfg Index
from Total Mortgage Underwritings Blog http://ift.tt/2mFtNP6
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