Optimism about the Trump tax cuts caused a bond sell-off yesterday, putting some upward pressure on mortgage rates. The good news is that the Freddie Mac PMMS this morning showed that rates are still very close to some of the lowest levels of the year. Read on for more details.
Where are mortgage rates going?
Rates unchanged in Freddie Mac PMMS – Stay near year lows
The Freddie Mac Primary Mortgage Market Survey came out moments ago (released every Thursday at 10:00am sharp) and showed that rates stayed unchanged from the previous week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage is 3.83% (0.6 point)
- The average rate on a 15-year fixed rate mortgage is 3.13% (0.5 point)
- The average rate on a 5-year adjustable rate mortgage is 3.20% (0.5 point)
That means that the 30-year fixed is still only seven basis points (one basis point = 0.01) above the year low for 2017 (set back on 9/7/17). This is clearly great news for anyone looking to purchase a home or refinance their current mortgage. That’s way below the year high of 4.30%.
Click here to get today’s latest mortgage rates (Sep. 28, 2017).
Of course, it’s always worth noting that the data for the survey was collected early on in the week and doesn’t necessarily reflect current market conditions. We did get a fairly significant rise in the 10-year Treasury yield (the best market indicator of where mortgage rates are going) yesterday, after President Trump came out talking about tax cuts.
Optimism among financial market participants that these tax cuts might actually happen and would therefore bolster economic growth caused investors to move out of government bonds and into stocks. That pushed the prices of bonds down and yields up. With mortgage rates typically moving in the same direction as the 10-year yield, we would see rates higher over the next few days if the current pattern holds.
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What does this mean for me?
Find out how low your rate would be
With mortgage rates continuing to run near year lows, right now is the perfect time to lock in a rate on a purchase or refinance. The best way to figure out what the numbers would be in your situation is to find out what your custom rate quote would be. It only takes a few minutes to get that information with our Mortgage Builder.
Today’s economic data:
GDP
The final estimate for second quarter GDP came in at 3.1%, which is one tenth higher than the previous estimate and exactly the same as the consensus that analysts had projected.
International Trade in Goods
The nation’s trade deficit slimmed down to $62.9 billion in August.
Jobless Claims
Applications filed for U.S. unemployment benefits rose 12,000 from the prior revised reading up to 272,000 for the week of 9/23/17. The four-week moving average is now 277,750.
Fedspeak
Kansas City Fed President Esther George at 9:45am.
Notable events this week:
Monday:
- Fedspeak
- Dallas Fed Mfg Survey
Tuesday:
- S&P Case-Shiller HPI
- Fedspeak
- New Home Sales
- Consumer Confidence
- Richmond Fed Mfg Index
Wednesday:
- Durable Goods Orders
- Pending Home Sales
- EIA Petroleum Status Report
Thursday:
- GDP
- International Trade in Goods
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
- Chicago PMI
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2xHTlm6
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