The monthly jobs report came in below expectations it’s not having the usual effect. Instead, investors are selling off their safe-haven bonds today, pushing mortgage rates higher. The goods news is that mortgage rates are still down near 2017 lows. Read on for more details.
Where are mortgage rates going?
Rates finish the week near 2017 lows
It’s an interesting situation happening in the markets right now. The big event of the day, the monthly jobs report for August, came in with a headline reading that was weak on both jobs (156,000 added compared to the consensus for 180,000) and wages (rose only 0.1% m/m).
Click here to get today’s latest mortgage rates (Sep. 1, 2017).
What would usually happen in this scenario, is investors would move more into bonds and out of stocks, pushing Treasury yields lower. Instead, we saw a bond rally that has pushed the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) up a few basis points. After a strong ISM manufacturing report, the 10-year yield continued to rise and is now up a little over four basis points.
Mortgage rates typically move in the same direction as the 10-year yield, so we’re seeing rates up a little bit today. The good news for borrowers is that they’re moving up off of year lows.
According to the Freddie Mac Primary Mortgage Market Survey (PMMS), the average rate on a 30-year fixed rate mortgage moved down to 3.82% this week–a low for 2017. That’s way down from the highest reading of the year: 4.31%. Clearly, mortgage rates are at very accommodating levels right now.
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What does this mean for me?
Find out what your rate would be
Mortgage rates improved this week and are at some of the lowest levels they’ve been at all year.
Anyone who has been thinking about purchasing a new home or refinancing their current mortgage should take some time this weekend and find out what their custom rate would be. The opportunity is definitely there for some borrowers to get a great deal and save money in the years to come.
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:
Employment Situation
- 156,000 jobs added compared to the 180,000 that was expected
- Average hourly earnings ticked up by 0.1%
- Unemployment rate moved up one tenth to 4.4%
PMI Manufacturing Index
The PMI manufacturing index came in at a 52.8 for August.
ISM Mfg Index
The ISM manufacturing index came in at a very strong 58.8 for August. New orders rose to a 6-year high.
Construction Spending
Construction spending fell by 0.6% in July. That puts it at 1.8% growth year over year.
Consumer Sentiment
Consumer sentiment for August came in at 96.8.
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 Claims
- 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/2wXFZDb
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