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?
Fed keeps June rate hike on the table
The Federal Reserve’s Federal Open Market Committee concluded its two-day meeting yesterday. With no post meeting press conference from Fed Chair Janet Yellen investors were left to get their information from the written statement. There were really no surprises, as most of what was said was just a confirmation of what investors had been calling for.
Click here to get today’s latest mortgage rates (May. 4, 2017).
Of course, the federal funds rate was kept at 0.75%-1.00%, but that wasn’t what everyone was tuned in to find out. Instead, financial market participants were hoping to find out some clues about when the next rate hike will be. June has been the most likely candidate ever since the March meeting, but with such a weak first quarter there was uncertainty about how it would affect that outlook.
Many investors had been putting forth the notion that the Fed would brush off the recent slowdown, choosing to focus on what they feel will be a strong economy moving forward. Those predictions wound up being exactly right, as one of the main passages from the written statement said:
“The Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around 2 percent over the medium term.”
Mortgage rates are still near 2017 lows. See how low your rate could be.
The optimistic outlook was immediately taken to mean that a June rate hike is still firmly on the table, which resulted in rising treasury yields. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) shot up right after the news broke and is about six basis points higher than where it was this time yesterday. That means that mortgage rates are up today.
Mortgage Rates Low in Freddie Mac PMMS
According to the latest Freddie Mac Primary Mortgage Market Survey, mortgage rates are still hanging around 2017 lows. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage ticked down one basis point to 4.02% (0.5 points)
- The average rate on a 15-year fixed rate mortgage stayed the same at 3.27% (0.5 points)
- The average rate on a 5-year adjustable rate mortgage moved up one basis point to 3.13% (0.5 points)
While data for the report is collected early on in the week, and does not reflect the market conditions after the Fed’s announcement yesterday, it’s still good news for borrowers.
Mortgage rates are moving up today, but they’re ascent is starting at a low level for 2017. They have a ways to go before they get close to 2017 highs, let alone anything that is considered historically high.
What does this mean for me?
Mortgage rates moved up late yesterday and are continuing to stay at those levels today. There is another threat for rising rates tomorrow morning with the monthly jobs report, making right now kind of a tricky spot for borrowers. The good news is that rates are still at historically low levels.
If you want 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.
Today’s economic data:
International Trade
The nation’s trade deficit barely moved this month, coming in at $43.7 billion.
Jobless Claims
Applications filed for unemployment benefits came in at 238,000 for the week of 4/29. That puts the 4-week moving average at 243,000.
Notable events this week:
Monday:
- Personal Income and Outlays
- PMI Manufacturing Index
- ISM manufacturing Index
- Construction Spending
Tuesday:
- FOMC Meeting Begins
Wednesday:
- FOMC Meeting Ends
- ADP Employment Report
- ISM Non Manufacturing Report
- EIA Petroleum Status Report
Thursday:
- International Trade
- Jobless Claims
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2q2wPlo
No comments:
Post a Comment