Mortgage rates are moving sideways today ahead of the first Federal Open Market Committee announcement of the year. When we get that statement at 2:00pm, we could see an adjustment to current mortgage rates.
Right now it’s looking like we’ll see a slight swing higher, but we’ll have to wait and see as you can’t completely rule out any surprises. Read on for more details.
Market Outlook 1.29.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat ahead of Fed statement
President Trump’s first State of the Union Address came and went with very few surprises.
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The President struck a diplomatic tone, something that was widely anticipated and helped keep the market reaction from really going anywhere.
In fact, financial market participants have already moved on to the next big event of the week: the Federal Open Market Committee’s post-meeting announcement this afternoon at 2:00pm.
It’s the first FOMC meeting of the year and the final meeting for out-going Fed Chair Janet Yellen. The general consensus is that the FOMC will keep the federal funds rate unchanged but signal for at least three rate increases in 2018.
Charting out a path of more than three rate hikes wouldn’t even be much of a surprise at this time, given the strengthening economy and uptick in inflation we’ve been seeing.
If the Fed does come out with a more aggressive tone, we could see some upward pressure on mortgage rates to finish out the day.
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Rate/Float Recommendation
Lock now before rates rise further
Mortgage rates could rise this afternoon when we get the FOMC announcement. Long-term, they are certainly expected to move higher.
If you’re considering buying a home or refinancing your current mortgage, our recommendation is for you 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 234,000 jobs added in January. That’s a strong reading that points toward a healthy labor market.
Employment Cost Index
The employment cost index rose 0.6% in the fourth quarter of 2017. That puts it at 2.6% for a year over year change.
Chicago PMI
The Chicago PMI came in at 65.7 for January.
Pending Home Sales Index
The pending home sales index increased 0.5% month over month in December. That brings it up to 110.1.
EIA Petroleum Status Report
For the week of 1/26/18:
- Crude oil: 6.8 M barrels
- Gasoline: -2.0 M barrels
- Distillates: -1.9 M barrels
FOMC Meeting Announcement
- 2:00pm
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Notable events this week:
Monday:
- Personal Income and Outlays
- Dallas Fed Mfg Survey
Tuesday:
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- President Trump State of the Union Address
Wednesday:
- ADP Employment Report
- Employment Cost Index
- Chicago PMI
- Pending Home Sales Index
- EIA Petroleum Status Report
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
- Productivity and Costs
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
Friday:
- Employment Situation
- Consumer Sentiment
- Factory Orders
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from Total Mortgage Blog http://ift.tt/2rTXtyz
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