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 finish the week higher
The big news this week has been the massive sell-off in the global bond market.
What is shaping up to be a four-day sell-off began back on Thursday when European Central Bank President Mario Draghi made remarks that indicated the ECB is planning to start tapering off of their large scale bond-buying program. Immediately investors began to sell, causing Treasury yields to spike.
Click here to get today’s latest mortgage rates (Jun. 30, 2017).
The yield on the U.S. 10-year Treasury note hit 2.12% on Monday but once Draghi made his comments on Tuesday it steadily rose to its current position of 2.28%. That’s the biggest weekly spike in months.
Mortgage rates do tend to follow in the footsteps of the 10-year yield, so rates have similarly jumped higher, but there is a silver lining on all of this.
Both the 10-year yield and mortgage rates touched 2017 lows this week, meaning that they have a long ways to climb before they get anywhere close to 2017 highs.
The Freddie Mac Primary Mortgage Market on Thursday (which collected its data right before the bond sell-off) had the average rate on a 30-year fixed rate mortgage (0.5 point) at 3.88%.
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That was a fresh 2017 low for the PMMS. To put it in perspective, the highest reading so far this year was 4.30% back in mid-March. And at that point, the yield on the 10-year Treasury note was 2.62%.
So yes, the bond market got hit this week and mortgage rates moved higher, but rates are still on the lower side of the spectrum for 2017. Stretching it out onto a historical perspective they are really not far off of some of the lowest levels of all time.
What does this mean for me?
Find out what your rate would be
The opportunity is there for some borrowers to get a great deal on a purchase or refinance. If you’ve been on the fence, you should definitely take some time this weekend to find out what your rate would be.
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. Or, 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:
Personal Income and Outlays
Personal income rose 0.4% month over month in May. Consumer spending rose 0.1%. The PCE price index fell 0.1%, while the Core PCE price index inched up 0.1%. That puts both the PCE Price Index and the Core PCE Price Index at 1.4% year over year. That’s not great news for officials crafting monetary policy at the Federal Reserve.
Chicago PMI Consumer Sentiment
Chicago PMI came in at 65.7 for June. That’s a decent rise from last month’s reading of 58.2 and is well above the consensus for 58.2
Consumer Sentiment
Consumer sentiment came in at 95.1 for June. That’s slightly above the consensus for 94.5.
Notable events this week:
Monday:
- Fedpseak
- Durable Goods Orders
Tuesday:
- Fedspeak
- S&P Case-Shiller HPI
- Consumer Confidence
Wednesday:
- Fedspeak
- International Trade in Goods
- Pending Home Sales Index
- EIA Petroleum Status Report
Thursday:
- GDP
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
- Chicago PMI
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2sZeHct
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