It’s been a wild ride for mortgage rates these past couple weeks. Last week rates touched down on fresh 2017 lows and this week rates began to climb off those levels. The good news is that they didn’t get too far, so we’re still looking at some of the best rates of the year. Read on for more details.
Where are mortgage rates going?
Rates finish the week near 2017 lows
There was a decent amount of economic data out today, and while several reports were in the negative, others were more positive than expected (given the circumstances with Hurricanes Irma and Harvey).
Click here to get today’s latest mortgage rates (Sep. 15, 2017).
The result for mortgage rates is some mild upward pressure. Looking at the scope of the week, it was almost a complete reversal of what we experienced last week. Investors regained their confidence on Monday and began to move back into stocks, pushing up bond yields and mortgage rates.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), moved up from about 2.09% early Monday to its current position of 2.20%. That’s a significant weekly gain.
The goods news is that it’s still a very low level for 2017. To put it in perspective, the highest reading for the 10-year yield this year happened back in March at 2.62%.
Mortgage rates typically move in the same direction as the 10-year yield, and likewise touched down on 2017 highs back in March, with the average rate on a 30-year fixed rate mortgage coming in at 4.32% in the Freddie Mac Primary Mortgage Market Survey.
Yesterday, the average rate on the 30-year came in at 3.78% (for the second consecutive week) in the PMMS. The results from the survey due have a lag from what is happening real-time, so given the way the market finished out the week it’s likely that rates are up a little bit from what the PMMS says.
However, mortgage rates are still at incredibly low levels for 2017, and have a ways to go before they get to anywhere that would be considered unfavorable for borrowers.
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What does this mean for me?
Find out what your rate would be
If you’ve been considering refinancing your current mortgage or purchasing a new home, right now is a great time to do it. At the very least, it makes sense to take five minutes and find out what your custom rate quote 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:
Retail Sales
Retail sales came in soft for August. The month over month change was a 0.2% decline. Retail sales less autos rose 0.2%. Less autos and gas they fell 0.1%. Analysts had called for a slightly more optimistic report.
Empire State Mfg Survey
The New York Fed’s general business index came in at 24.4 for September.
Industrial Production
Industrial production fell 0.9% for August. Manufacturing fell 0.3%. Both readings were expected to post 0.1% gains, but repercussions from the hurricanes forced a different hand.
Business Inventories
Business inventories rose by 0.2% in July.
Consumer Sentiment
Consumer sentiment fell in September to 95.3, but given the chaos from hurricanes Harvey and Irma, it could have been much worse.
Notable events this week:
Monday:
- Nothing
Tuesday:
- JOLTS
Wednesday:
- PPI-FD
- EIA Petroleum Status Report
Thursday:
- Consumer Price Index
- Jobless Claims
Friday:
- Retail Sales
- Empire State Mfg Survey
- Industrial Production
- Business Inventories
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2xEJZJ7
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