It’s another slow day in the markets which is keeping mortgage rates from moving very far from where they started the week. That’s a good thing for anyone looking to purchase a new home or refinance their current mortgage, as it’s allowing rates to continue to run at extremely accommodating levels. Read on for more details.
Market Outlook 10.2.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates still not moving much this week–remain at low levels
It’s another day and another trading session with little movement for mortgage rates. Looking at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) we can see that it’s currently at 2.33%, which is just one basis point up from where it was at the start of the day and two basis points below where it was at the beginning of the week.
Click here to get today’s latest mortgage rates (Oct. 4, 2017).
We’re basically just marching toward the monthly jobs report on Friday at this point, although we do still have a few opportunities for some market action ahead of that report. Fed Chair Janet Yellen will speak at a community banking conference this afternoon–an event that investors will certainly be keeping their eye on.
Whenever the Fed Chair speaks, it’s always a potential opportunity for some market action. This time around, however, it does seem more likely than not that she will refrain from divulging any more clues about an upcoming rate hike.
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She’s already been fairly forthcoming over the past two weeks and made several remarks that another rate hike in 2017 will probably be warranted.
Other than coming out and clearly stating that the quarter point increase to the federal funds rate will happen in December, it doesn’t really seem like there is much for her to say that would increase investor optimism and cause the markets to adjust again.
Mortgage rates typically move higher whenever the Fed comes out with more aggressive rhetoric, so in the event that she did make such remarks, rates would see some upward pressure.
What does this mean for me?
Find out how you can take advantage of the low rate environment
Mortgage rates have been running at extremely accommodating levels for 2017 recently. There are definitely opportunities for borrowers to get a great deal on a purchase or refinance right now.
We have seen a slight uptick in rates over the past couple weeks–a trend that is expected to continue over the coming months–so you should try to act sooner rather than later to get the better rate.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
ADP Employment Report
The ADP employment report is showing that 135,000 jobs were added in September. That’s only 5,000 below the consensus for 140,000 that analysts had predicted.
Many onlookers have been speculating that the hurricanes early in the month would throw a wrench in the labor market numbers for September, but this report isn’t falling in line with those projections.
Of course, the main labor market report that investors will be looking at is the monthly employment situation report (a.k.a. the jobs report) from the Bureau of Labor Statistics on Friday morning.
While today’s report does provide some optimism, the two labor reports don’t always match up with one another, so it doesn’t necessarily mean that we’re in the clear on Friday.
PMI Services Index
The PMI Services Index came in at 55.3 for September. That’s one tenth higher than the prior reading.
ISM Non-Mfg Index
The ISM Non-Mfg Index came in at a 59.8 for September, which is a solid increase from the prior reading of 55.3.
EIA Petroleum Status Report
For the week of 9/29/17:
- Crude oil: -6.0 M barrels
- Gasoline: 1.6 M barrels
- Distillates: -2.6 M barrels
Fedspeak
- St. Louis Fed President James Bullard at 3:00pm
- Fed Chair Janet Yellen at 3:15pm
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/2xTsYZ7
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