Mortgage rates have increased this week due to the passage of the Republican tax bill. On their current path, it seems they are headed for their largest weekly rise in several weeks. They are climbing off of very accommodating levels, but we still think that the smart decision is to take action now to try and get the best deal. Read on for more details.
Where are mortgage rates going?
Rates jump after tax bill gets passed
The big news this week has been the passage of the Republican tax bill through Congress. That took place yesterday and ushered in a rally in stocks and a sell-off of bonds.
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The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are headed) is at 2.49% right now after a twelve basis point spike since the beginning of the week. This puts the 10-year yield at its highest position since March.
Mortgage rates typically move in the same direction as the 10-year yield so rates have seen some notable upward pressure this week. This is something that we had anticipated would happen, which is why we’ve been recommending that borrowers take action sooner rather than later.
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Rate/Float Recommendation
Lock now
Mortgage rates are moving higher and are expected to continue doing so over the coming weeks and months. For this reason, we think that it’s prudent for most borrowers to lock in a rate now in order to try and get the best deal on a purchase or refinance.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
GDP
The third estimate for third-quarter GDP came in today at 3.2%, which is just a hair under the mark analysts had projected.
Jobless Claims
Applications filed for U.S. unemployment benefits came in at 245,000 for the week of 12/16/17. That’s higher than the consensus for 234,000, but it’s nothing that raises much concern.
Philly Fed Business Outlook
The Philly Fed’s General Business Conditions Index came in at a very strong 26.2, which is outside of even the high estimate projected by analysts.
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Notable events this week:
Monday:
- Housing Market Index
Tuesday:
- Housing Starts
- Fedspeak
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- GDP
- Jobless Claims
- Philly Fed Business Outlook
Friday:
- Durable Goods Orders
- Personal Income and Outlays
- New Home Sales
- Consumer Sentiment
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from Total Mortgage Blog http://ift.tt/2zcLdI4
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