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 move up a touch
Long-term treasury yields are moving higher today as investors start to regain their appetite for equities. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is up about two basis points (one basis point = 0.01).
While that is up for today, it’s still down several basis from where it was at the start of the week. Everything thought it would be an uneventful week with such little economic data out, but the unexpected political chaos really turned that outlook on its head.
Click here to get today’s latest mortgage rates (May. 19, 2017).
No one really knows where the story with Trump and Comey goes from here, but the more hot water the president finds himself in, the more likely it is that rates will dip back down. Looking ahead to next week, there are quite a few important economic reports to be released, as well as several speaking engagements from Fed officials.
Things really start to pick up on Wednesday, and culminate on Friday with the Durable Goods report and second estimate of Q1 GDP. That means there are plenty of opportunities for rates to swing one way or another. In general, positive economic data moves rates higher, while poor data sends them lower.
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What does this mean for me?
Lock now while rates are down
Mortgage rates are down on the week, which is good news for anyone looking to refinance their current mortgage or purchase a new home. As stated above, there’s a lot going on next week and it’s certainly possible that rates rise as the economic data gets released. On the other hand, they could also fall if the political drama thickens.
What you decide to do right now depends on how much risk you can handle. One option (some would say the prudent decision) would be to lock while rates are already down. With mortgage rates right around 2017 lows, it’s hard to argue with that line of thinking.
But, if you really want to roll the dice and bank on mortgage rates moving even lower, then wait it out and see what happens next week.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. If you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
Fedspeak
St. Louis Fed President James Bullard came out this morning and commented on the recent weakness in the U.S. economy, going so far as to say that the Fed might need to rethink its June rate hike plans. He said that “financial market readings” have “moved in the opposite direction” of what is to be expected if a June rate hike was on.
He’s certainly not wrong. Inflation readings have disappointed and bond yields have moved lower. However, Bullard’s comments haven’t really done a whole lot to affect market sentiment right now.
That’s at least partly due to the fact that he’s a non-voting member of the FOMC this year. The CME Group’s fed fund future is showing about a 78% chance of a quarter point increase in the federal funds rate to 1.00%-1.25% in June.
San Francisco Fed President John Williams will speak later today at 1:40pm.
Notable events this week:
Monday:
- Empire State Mfg Survey
- Housing Market Index
Tuesday:
- Housing Starts
- Industrial Production
Wednesday:
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Philadelphia Fed Business Outlook
- Fedspeak
Friday:
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2r02t3v
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