Recent political drama combined with low inflation numbers have kept mortgage rates at very low levels. Today, the Freddie Mac PMMS came out and it showed the average on the 30-year fixed at a new year low. This is great news for anyone looking to purchase or refinance. Read on to get the details.
Where are mortgage rates going?
Rates fall to new 2017 lows in Freddie Mac PMMS
It’s been a bumpy road for mortgage rates the past several weeks. At the start of the year, analysts had predicted that pro-growth policies from the Trump administration combined with gradual rate hikes from the Fed could move rates up into the 4.5% range for the 30-year fixed.
Clearly, though, that has not happened, nor does it appear that it will happen by the time 2018 rolls around. President Trump has faced much difficulty getting his policies into action, and has created much uncertainty with his various sporadic outbursts.
Click here to get today’s latest mortgage rates (Aug. 24, 2017).
Most recently, his threat to shutdown the government if the border wall didn’t get funding caused the 10-year Treasury yield (the best market indicator of where mortgage rates are going) to have its largest single day decline in over a month on Wednesday.
On top of the political drama, the Fed is dealing with inflation numbers that don’t want to cooperate. All of their favorite readings are continuing to fall short of their 2% target.
The chances of another quarter point rate hike in 2017 currently stand at about 40% according to the CME Group’s Fed Funds futures. It’s not surprising then, that this week’s Freddie Mac Primary Mortgage Market Survey (PMMS) is showing rates at new 2017 lows. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell three basis points to 3.86% (0.5 point)
- The average rate on a 15-year fixed rate mortgage remained unchanged at 3.16% (0.5 point)
- The average rate on a 5/1-year adjustable rate mortgage moved up one basis point to 3.17% (0.5 point)
That’s a new year low by two basis points for the 30-year. Here is what chief economist at Freddie Mac, Sean Becketti, had to say about rates this week:
“The 10-year Treasury yield fell 6 basis points this week amid concerns over lagging inflation. The 30-year mortgage rate also declined for the fourth consecutive week, dropping 3 basis points to a new year-to-date low of 3.86 percent.”
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What does this mean for me?
Lock now while rates are at new lows
Mortgage rates are currently positioned at some of the lowest rates they’ve been at all year. That is obviously great news for anyone who is looking to refinance their current mortgage or purchase a new home. If you can, our recommendation is for borrowers to lock in now while rates are this low.
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:
Jackson Hole Symposium
The Kansas City Fed’s annual meeting of the minds kicks off today. Both Fed Chair Janet Yellen and European Central Bank President Mario Draghi will speak tomorrow.
Jobless Claims
Applications for U.S. unemployment benefits moved up by 2,000 this week to 234,000.
Existing Home Sales
Existing home sales missed expectations in July, coming in at an annualized rate of 5.440 M. That’s 1.3% decline from June.
Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- FHFA House Price Index
- Richmond Fed Mfg Index
Wednesday:
- New Home Sales
- PMI Composite Flash
- EIA Petroleum Status
- Fedspeak
Thursday:
- Jackson Hole Symposium
- Jobless Claims
- Existing Home Sales
Friday:
- Jackson Hole Symposium
- Durable Goods
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2vsxL0A
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