We’re approaching the end of the week and mortgage rates are still at very accommodating levels. It’s been a week of mild ups and downs, and right now we’re experiencing the latter. Read on for more details.
Where are mortgage rates going?
Mortgage rates up but still near year lows
We’re coming close to the end of the week and mortgage rates are experiencing some mild downward pressure. It’s been an interesting week in that things unfolded mostly how we expected them too. Given all of the surprises we’ve gotten the last few weeks, for things to go mostly to plan was a bit out of the ordinary.
Click here to get today’s latest mortgage rates (Sep. 22, 2017).
It all started on Tuesday when President Trump didn’t veer too far off on Tuesday during his first speech to the United Nations General Assembly. The mostly straight-forward and scripted speech was really devoid of any new inflammatory statements, and so the market response was basically zero. The other main event of the week was the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday.
All of the action took place on Wednesday afternoon when the official statement was released, followed by a press conference with Fed Chair Janet Yellen. There was the widely anticipated notion that the Fed would keep the federal funds rate unchanged and signal the beginning of the reduction of their $4.5 trillion balance sheet.
That’s exactly what happened, with the FOMC stating that in October the balance sheet will be reduced by $10 billion a month. The one surprising part of the meeting was the fact that eleven out of the sixteen FOMC members still believe that another rate hike will be necessary in 2017.
Ahead of the meeting, there was less than a 50% chance of another rate increase, according to the CME Group’s Fed Funds futures. That quickly changed once the news broke that the FOMC was still tinkering around with the notion of another increase.
Right now, the CME Group’s Fed Funds futures are giving it about a 72% chance of happening. It’s about as drastic a reversal as one could expect, and is certainly going to make the final quarter of 2017 more interesting.
Typically, mortgage rates move higher when the economy is stronger, so this could put some upward pressure on rates in the coming weeks. That’s really nothing new, though, as the long-term trend for rates has long-been for them to rise.
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What does this mean for me?
Great time to lock in a rate
The good news is that mortgage rates are still at extremely low levels for 2017, let alone on an historical perspective. Anyone who is looking to refinance their current mortgage or purchase a new home right now has chosen a great time to do so. As stated, the long-term trend is still for rates to edge higher, so borrowers who act sooner rather than later are likely to get the better deal.
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:
Fedspeak
- Kansas City Fed President Esther George at 9:30am.
PMI Composite Flash
The PMI Composite Flash came in just about in line with expectations for September. The composite flash came in at 54.6, manufacturing at 53.0, and services at 55.1.
Notable events this week:
Monday:
- Housing Market Index
Tuesday:
- FOMC Meeting Begins
- Housing Starts
- Import and Export Prices
- President Trump Speaks to the United Nations
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
- Philly Fed Business Outlook Survey
- FHFA House Price Index
Friday:
- Fedspeak
- PMI Composite Flash
from Total Mortgage Underwritings Blog http://ift.tt/2wLypqP
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