It’s another day and we’re still just slugging along until the monthly jobs report tomorrow. Mortgage rates are remaining fairly steady, which is keeping them close to year lows. This is great news for anyone who is looking to purchase or refinance. Read on for more details.
Where are mortgage rates going?
Mortgage rates remain near year lows
It’s been a very slow week for mortgage rates. Every opportunity for action so far has turned into a non-event, keeping rates from adjusting too far in either direction. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is currently at 2.34%.
That’s a little over one basis point higher from where it was at the start of the day and right where it was at the start of the week. Mortgage rates typically move in the same direction as the 10-year yield.
We did get the Freddie Mac Primary Mortgage Market Survey (PMMS) this morning, which showed that mortgage rates ticked up a little from last week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage is 3.85%
- The average rate on a 15-year fixed rate mortgage is 3.15%
- The average rate on at 5/1-year adjustable rate mortgage is 3.18%
The average rate for each loan type moved up two basis points from the previous week. When we take a look at the data for 2017, it’s clear that rates are still running at extremely low levels.
The lowest mark for the 30-year fixed rate this year was 3.78% about a month ago. Today, the 30-year is just seven basis points above that mark and are way below the year high of 4.32% set in early March.
Click here to get today’s latest mortgage rates (Oct. 5, 2017).
Of course, the biggest economic release of the week has yet to happen. That will be the Employment Situation for September (a.k.a. the monthly jobs report). That report is consistently one of, if not the most important, reports each month and there’s no reason to believe this time around is any different.
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Analysts are calling for a slightly more subdued report this go around (100,000 jobs added), partly the result of the multiple hurricanes that battered Texas and Florida in September. Depending on what kind of report we get, mortgage rates could certainly adjust in the early morning. Generally, a strong labor market means more upward pressure on rates, and vice versa for a weak labor market.
What does this mean for me?
Great time to lock in a rate
The Freddie Mac PMMS clearly shows that mortgage rates are at extremely accommodating levels for borrowers. Anyone who is currently looking to refinance their current mortgage or purchase a new home has picked a great time to do so. The long-term trend is still for mortgage rates to rise so borrowers who act sooner rather than later are likely to get the better deal.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
International Trade
The Nation’s trade deficit narrowed to $42.4 billion for August. That’s basically right in line with what analysts had expected.
Jobless Claims
Applications for U.S. unemployment benefits came in at 260,000 for the week of 9/30/17. That’s 5,000 below what was expected and a drop of 12,000 from the prior reading.
Fedspeak
- Fed Governor Jerome Powell at 9:10am
- San Francisco Fed President John Williams at 9:15am
- Philadelphia Fed President Patrick Harker at 9:30am
- Kansas City Fed President Esther George at 4:30pm
Factory Orders
Factory orders went up by 1.2% in August. That’s up from the prior reading of -3.3% and basically in line with what analysts had expected.
Notable events this week:
Monday:
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- Fedspeak
Tuesday:
- Fedspeak
Wednesday:
- ADP Employment Report
- PMI Services Index
- ISM Non-Mfg Index
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- International Trade
- Jobless Claims
- Fedspeak
- Factory Orders
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2gedA1E
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