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?
Freddie Mac shows current rate environment best of the year
Another week has come and gone. The release of Trump’s economic plan played into the biggest rise for rates (which took place late Tuesday into Wednesday), however, it wasn’t a sustained rally and we’re on track today to finish the week lower than where we started.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down about two basis points this morning. That brings it down to 2.23%. It started the week around 2.25%. Generally, mortgage rates follow closely behind the 10-year yield, so this downward trend is good for borrowers.
Click here to get today’s latest mortgage rates (May. 26, 2017).
We saw yesterday that the current rate environment is very favorable to borrowers. The Freddie Mac Primary Mortgage Market Survey (PMMS) got released and it showed that mortgage rates were at new 2017 lows. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage sunk seven basis points to 3.95% (0.5 points).
- The average rate on a 15-year fixed rate mortgage fell eight basis points to 3.19% (0.5 points).
- The average rate on a 5-year adjustable rate mortgage dipped six basis points to 3.07% (0.4 points).
This is only the second time in 2017 that the 30-year fixed has fallen below 4% in the PMMS. Last time it was escalating geopolitical tension that prompted rates to take a dive.
This time around it was domestic events that were the main driver, specifically, the Trump/Comey situation last week. Financial market participants rushed out of stocks and into bonds after the news broke, and there just wasn’t enough strong economic data this week to reverse that trend.
The durable goods report this morning came in in the negative, providing more concern for economists who stated that the Q1 weakness was a temporary trend. There’s not a whole lot of time between now and the Fed’s meeting next month (June 12-13), and it will be very interesting to see what decision they make if we continue with this pattern.
Looking ahead to next week, we won’t hear from the Fed very much, but we will get the monthly employment situation for May on Friday. That’s the last jobs report before the June FOMC meeting, and could play a pivotal role in the decision to hike rates or not.
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What does this mean for me?
Lock now while rates are low
Mortgage rates are at some of the lowest levels they’ve been all year. Clearly, that is good news for anyone looking to refinance their current mortgage or purchase a home.
If you’ve been on the fence about taking action, you should seriously take some time this weekend and see if the numbers are in your favor. The opportunity is definitely there for many borrowers to save on their monthly payment, or to lock in a low rate on a purchase for years to come.
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:
Durable goods orders fall
Durable goods fell 0.7% month over month in April, putting them at 0.9% year over year. New orders minus transportation fell 0.4%, making it 4.9% year over year. Core capital goods were unchanged, making the year over year reading 2.9%. It’s certainly a weak report, but economists were (mostly) expecting it, so that softens the blow a little bit.
GDP gets revised higher
First-quarter GDP got revised upward from 0.7% to 1.2% this morning. It’s a small win for what has been a slow economy in 2017. This report isn’t have much of an effect on the markets, as investors are focusing more on Q2 data.
Consumer sentiment is little changed
The University of Michigan’s final reading for the consumer sentiment index is at 97.1 for May. That’s just a touch below the 97.6 that economists had predicted.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- PMI composite Flash
- New Home Sales
- Richmond Fed Mfg Index
- Fedspeak
Wednesday:
- FHFA House Price Index
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Minutes
- Fedspeak
Thursday:
- International Trade in Goods
- Jobless Claims
- Fedspeak
Friday:
- Durable Goods Orders
- GDP
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2s3uzHp
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