It’s another slow day with little market action, keeping mortgage rates from moving in either direction. While it’s not the most exciting news, it is good for borrowers, as it’s keeping mortgage rates on the lower side of the spectrum for 2017. Other than the consumer sentiment report on Friday, any news about the GOP tax plan could potentially stir some market action. Read on for more details.
Market Outlook 11.6.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Slow week marches on
When you’re following mortgage rate trends, some weeks are certainly more interesting than others. Unfortunately, this week is shaping up to be on the boring side.
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After all of the excitement last week surrounding the FOMC meeting and the next Fed chair nomination, there’s little happening this week that can keep the energy going strong.
There’s hardly any significant economic reports out (the consumer sentiment report on Friday morning is basically the only notable report) and the Fed is quiet this week as well.
Typically when there is this little going on it opens up the conversation to political events, and that’s exactly what we’re seeing with the Republican tax reform agenda taking center stage.
It’s no doubt pretty hectic down in D.C. this week as lawmakers are busy trying to get a draft Senate bill ready by the end of the week. The markets have been rallying recently when news breaks that the GOP plan will successfully make it through.
After all, the tax cuts put forward are good for companies which means that investors will feel more comfortable backing them. With investors putting more money into stocks, that leaves less money for bonds, pushing Treasury yields lower.
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What does this have to do with mortgage rates? Well, mortgages get packaged into mortgage-backed securities (MBS) on the secondary market and compete for similar types of investors as bonds.
When bond yields adjust, specifically the yield on the 10-year Treasury note, MBS have to adjust their yields to stay competitive.
So the more likely it is that the Republicans will get the tax cuts they desire, the greater the chance that bond yield and mortgage will rise. Fortunately, it’s still early in the process and investors are holding steady until more news about the situation comes out.
Rate/Float Recommendation
Great time to lock
Mortgage rates are holding steady this week but are still expected to rise over the long-term. Given that rates are still no the lower end of the spectrum for 2017, we’re recommending that borrowers lock in a rate on a purchase or refinance sooner rather than later.
It only takes a few minutes online or a quick phone call to get started.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
JOLTS
According to the Labor Department, there were 6.093 million job openings in September.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- JOLTS
Wednesday:
- EIA Petroleum Status Report
- 10-Yr Note Auction
Thursday:
- Jobless Claims
Friday:
- Consumer Sentiment
Contact us today to see if we can save you money on your home payments.
from Total Mortgage Blog http://ift.tt/2AhnMOv
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