A surprise missile launch from North Korea is putting downward pressure on mortgage rates today. It’s just too much uncertainty for financial market participants to take, and so they’ve gone in risk-off mode into government bonds. Read on for more details.
Market Outlook 8.28.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates tumble after North Korea missile launch
Mortgage rates are tumbling lower this morning after North Korea surprises the world with a ballistic-missile test over Japanese airspace. Tensions had eased in recent days but now with the most bold and provocative act yet from the east Asian nation, we’re back to military jawboning and uncertainty.
Click here to get today’s latest mortgage rates (Aug. 29, 2017).
Financial market participants immediately rushed into the perceived safe haven of government bonds. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down five basis points today to 2.10%.
That’s the lowest level it’s been at since just days after President Trump won a surprise victory over Hilary Clinton. Mortgage rates typically trend in the same direction as the 10-year yield, so rates have improved and are down at very low levels right now.
The geopolitical chessboard has provided several surprise events recently that have really thrown a wrench in our forecasts. Looking at the economic calendar for the week, the focus was supposed to be on the economic data such as GDP, PCE, and the jobs report.
Those reports will still have an effect on the markets but we’re now at a much different starting point than we were yesterday. The good news for borrowers is that mortgage rates have fallen and are at very accommodating levels.
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What does this mean for me?
Take advantage of the dip and lock now
Mortgage rates are down right now and there’s really no telling how long they’ll stay there. The situation with North Korea is back on very shaky ground, but as we’ve seen before, rates could move up at a moment’s notice. If you’ve been thinking about refinancing or purchasing, our recommendation is to lock in a rate sooner rather than later.
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:
S&P Corelogic Case-Shiller HPI
The 20-city case-shiller housing price index is showing seasonally adjusted prices for June rose 0.1%. The non-seasonally adjusted reading had prices up 0.7%. That puts the NSA year over year rate at 5.7%.
Consumer Confidence
Consumer confidence
Notable events this week:
Monday:
- International Trade in Goods
- Dallas Fed Mfg Survey
Tuesday:
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
Wednesday:
- ADP Employment Report
- GDP
- EIA Employment Status Report
Thursday:
- Jobless Cuts
- Personal Income and Outlays
- Chicago PMI
- Pending Home Sales Index
Friday:
- Employment Situation
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2xJPfHi
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