More news about the upcoming decision from President Trump on the next Fed chair is creating a market reaction today. The good news for anyone looking to buy a home or refinance is that it’s causing mortgage rates to move lower. Read on for more details.
Where are mortgage rates going?
Rates flat moving lower to end the week
The big news this morning is that President Donald Trump is now leaning toward Jerome Powell as his nominee for the next chair of the Federal Reserve.
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Current Fed chair Janet Yellen will see her term expire in February, and over the past few weeks we’ve seen the race to fill her position heat up.
The decision has been closely monitored by financial market participants as we’ve seen a market reaction nearly every time there has been some sort of news break on the matter.
That’s what we’re seeing this morning with the news about Powell, with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) moving lower by about four basis points.
Investors had been hoping that the other front-runner, Stanford Professor John Taylor, would get the nod over Powell, as he’s more open to deregulation efforts. With Powell seemingly in the lead now, the risk-on scenario is taking a couple steps backward.
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It’s been a flurry of ups and downs over as we draw closer the final decision, and we shouldn’t have to wait much longer as it’s been reported that Trump will announce a decision ahead of his trip to Asia on November 3.
Mortgage rates have been on the rise over the past week (as we saw in the Freddie Mac Primary Mortgage Market Survey on Thursday), but the good news is that they’re moving lower as we head into the weekend.
If you look at the big picture for 2017 (let alone a historical perspective), it’s clear that mortgage rates are still on the lower end of the spectrum, meaning that right now is a great time for borrowers to lock on a purchase or refinance.
Rate/Float Recommendation
Lock in your rate today
With mortgage rates moving lower today and continuing to run on the low side for the year, we’re recommending that borrowers lock in a rate on a purchase or refinance. The long-term trend is still for rates to rise so it makes sense to take action now.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
GDP
The first estimate for third-quarter GDP came in at 3.0%, which is higher than the 2.5% that was expected.
Consumer Sentiment
The consumer sentiment index for October came in at 100.7. That’s a strong reading and only three tenths below the consensus.
Notable events this week:
Monday:
- Nothing
Tuesday:
- PMI Composite Flash
Wednesday:
- Durable Goods Orders
- New Home Sales
- EIA Petroleum Status Report
Thursday:
- International Trade in Goods
- Jobless Claims
- European Central Bank Meeting
- Pending Home Sales Index
- Fedspeak
Friday:
- GDP
- Consumer Sentiment
from Total Mortgage Blog http://ift.tt/2yRauJc
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