Current mortgage rates are moving a little higher this morning after some better than expected economic data. We could see mortgage rates continue to adjust tomorrow morning when we get the monthly jobs report for December. Anyone looking to buy or refinance should pay attention to what happens after that release. Read on for more details.
Market Outlook 1.2.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates down as investors wait for FOMC minutes
It’s a snowy day for most of the East Coast, but that’s not stopping financial markets from getting on with the day’s events.
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If we take a look at the yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going), we can see that it’s up about three basis points from where it started the day.
That rise seems mostly due to a stronger than expected headline reading in the ADP employment report this morning. That report showed that 250,000 jobs were added in December, compared to the 180,000 that analysts had expected.
The ADP report is always the precursor the the main event, the Employment Situation report, which gets released the following day. The two reports don’t always align, but that doesn’t stop investor optimism after a strong ADP report.
If we do get a strong monthly jobs report tomorrow morning that would certainly put further upward pressure on Treasury yields and mortgage rates as market participants move out of bonds and into riskier assets such as stocks.
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Rate/Float Recommendation
Lock now
Mortgage rates are gradually moving higher, which is something we’ve been expecting, and believe will continue to to happen over the coming weeks and months.
Given this expectation, we believe that it makes the most sense for anyone trying to buy a home or refinance their current mortgage to lock in a rate sooner rather than later.
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 showed that 250,000 jobs were added in December.
Jobless Claims
Applications for U.S. unemployment benefits came in at 250,000 for the week of 12/30. The four-week moving average is now at 241,750.
PMI Services Index
The PMI services index hit a 53.7 for December.
EIA Petroleum Status Report
For the week of 12/29:
- Crude oil: -4.6 M barrels
- Gasoline: 0.6 M barrels
- Distillates: 1.1 M barrels
Fedspeak
St. Louis Fed President James Bullard will speak at 1:30pm.
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- Markets Closed: New Year’s Day
Tuesday:
- PMI Manufacturing Index
Wednesday:
- ISM Mfg Index
- Construction Spending
- FOMC Minutes
Thursday:
- ADP Employment Report
- Jobless Claims
- PMI Services Index
- EIA Petroleum Status Report
- Fedspeak
Friday:
- Employment Situation
- International Trade
- Factory Orders
- ISM Non-Mfg Index
- Fedspeak
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from Total Mortgage Blog http://ift.tt/2CTqc8L
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