Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice. Don’t feel like reading? Check out our Market Outlook series.
Market Outlook 5.22.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Markets flat to lower this morning
The markets are taking a cautious approach this morning after a suspected suicide bombing in Manchester, U.K. last night. Treasury yields are down a touch. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down a little over one basis point. That means mortgage rates are flat to lower right now.
Click here to get today’s latest mortgage rates (May. 23, 2017).
The major economic data releases today (PMI flash and new home sales) failed to move things higher. PMI came in just about at expectations, while new home sales were down a very disappointing 11% in April. This afternoon there are a couple speaking engagements from Fed officials, but they mostly come too late in the day to have an affect on the market today.
It kind of seems like the markets are going to coast around where they are until the day’s close. It’s possible that we’ll see some investors find their footing and move back into equities, pushing up bond yields and mortgage rates, but they shouldn’t move any higher than a couple basis points from where they are now. Things really start to pick up tomorrow with the release of the FOMC minutes from their meeting three weeks ago.
Financial market participants will be keyed in to see if there is any insight to be gleaned about the upcoming June meeting. We’re less than four weeks away now and while the general sentiment seems to be that a quarter point increase in the federal funds target rate to 1.00%-1.25%, there are still some lingering doubts that keep poking their head up.
Just last night Fed Governor Lael Brainard stated that she is still unsure if 4.4% unemployment means that there is no slack in the labor market. Then early this morning Minneapolis Fed President Neel Kashkari said that there is still a lot of data to consider before deciding on a course of action in June. The point here is that while the CME Group’s Fed Funds futures are giving June a 78.5% chance of a rate hike, at least a few Fed officials are still weighing their options.
What does this mean for me?
Take action now
Mortgage rates are continuing to linger around 2017 lows. If rates hold steady as we head into afternoon trading tomorrow, it’s very likely that the Freddie Mac Primary Mortgage Market Survey on Thursday will be one of the best of the year for borrowers.
Click here to get today’s latest mortgage rates (May. 23, 2017).
That means that anyone who is currently on the fence about a refinance or purchase should seriously consider getting off it. At the very least, you owe it to yourself to reach out and see if you could save yourself some money with a refinance or lock in a low rate.
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:
PMI composite Flash
The composite reading came in a little above expectations at 53.9. Manufacturing was the opposite, coming in right below expectations at 52.5. Services came in at 54.0.
New Home Sales
After surging in March, new home sales are down a disappointing 11% month over month in April.
Richmond Fed Mfg Index
The Richmond Fed mfg index missed expectations for a 15, coming in instead at a surprisingly low 1.
Fedspeak
- Minneapolis Fed President Neel Kashkari will speak at 3:15pm.
- Philly Fed President Patrick Harker will speak at 5:00pm.
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/2qgdUz7
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