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 remain lower
It’s another slow day today with mortgage rates not really going anywhere. The best market indicator we have–the yield on the 10-year Treasury note–is at 2.33%. That’s one basis point below where they were at yesterday’s close. It seems that the disappointing housing starts data is more in focus than the solid industrial production report.
Click here to get today’s latest mortgage rates (May. 16, 2017).
If this trend for rates continues through tomorrow, it’s possible that we’ll see mortgage rates drop closer, and maybe even below, the 4.0% threshold in the Freddie Mac Primary Mortgage Market Survey. That report comes out at 10am just about every Thursday of the year. Last week it had the average rate on a 30-year fixed rate mortgage at 4.05%. That’s not far from the 2017 low of 3.97% back on April 20.
The past three weeks it’s barely moved, going from 4.03% down to 4.02%, and finally up to 4.05%. To really round out the rate picture for this year, the highest average for the 30-year was 4.30% on March 16. Clearly, borrowers who are currently on the hunt for a purchase or refinance have picked a pretty good time in 2017 to do it.
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It’s extremely difficult to predict exactly where mortgage rates will be in 3 months, 6 months, etc., but the overwhelming sentiment is that they will be higher than where they are right now.
We’re still waiting on the economic data to keep rolling out and confirming that the economy is in good enough shape to handle further monetary tightening, but as of right now, it seems that a June rate hike is a go for the Fed. The CME Group’s fed fund futures are showing about a 74% chance of happening.
What does this mean for me?
The opportunity is there for borrowers to lock
With mortgage rates continuing to stay around the bottom of the dip that began on Friday, borrowers have the opportunity to take advantage of the situation.
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:
Housing Starts
Housing starts tumbled 2.6% in April, resulting in a less than expected 1.172 M. That’s the lowest reading since November. The low end of the Econoday consensus was 1.215 M, so this report certainly caught economists by surprise, and not in a good way.
It’s particularly disheartening when many had thought that we would get a rebound after a supposedly weather related slump in March. The report also showed that building permits fell by 2.5% month over month in April.
Industrial Production
Industrial production rose 1.0% for the month of April. That’s above expectations for both 0.4% and the prior reading of 0.4%. A big positive was manufacturing rising up 1.0%, in contrast to last month’s drop of 0.4%.
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/2rcbEgR
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