Happy Friday everyone, and welcome to the TMS current mortgage rates blog. There’s some economic news out today, but first, your mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates.
Where are mortgage rates going?
Freddie Mac PMMS has rates down
The Freddie Mac Private Mortgage Market Survey (PMMS) was released yesterday morning, and it revealed mortgage rates moved lower his week. The average rate on a 30-year fixed is now 3.61% (0.6 points), the average rate on a 15-year fixed is 2.86% (0.5 points), and the average rate on a 5-year ARM is 2.80% (0.5 points). That puts the 30-year fixed rate three basis points above the low of the year.
April jobs report disappoints
The Labor Department’s most recent Nonfarm Payroll report showed that 160,000 jobs were added in April. That’s significantly lower than the 200,000 that economists had predicted. It’s even 15,000 below the bottom end of the 175,000-245,000 consensus range. The unemployment rate, which many had hoped would dip back down to 4.9%, remained at 5.0%. The only positive out of the report was that wage growth increased by 0.3%.
Everyone that was looking for a strong report to bolster the chances of a June rate hike was severely disappointed. Unless strong data starts to pour out of the economy next week, I think a June rate hike is almost certainly off the table. The markets seem to agree with me. The Fed Fund futures currently gives June a 6% chance of a rate hike. December is the only meeting in 2016 with a greater than 50% chance, and it’s just barely over at 53%.
The yield on the U.S. 10-year Treasury note immediately plummeted after the release of the jobs report but has since climbed back up and is now around 1.76%. Yesterday’s close was 1.74%. Mortgage rates usually follow the lead of the 10-year yield, so depending on how the day finishes out, we could be seeing lower mortgage rates next week.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
It means that low rates are here to stay for a while longer. So if you’ve been thinking about purchasing a home or refinancing your current mortgage, now is a great time to do it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Nonfarm Payrolls
The nonfarm payrolls report impacts where mortgage rates are going and was therefore discussed above.
Don’t wait for rates to rise. Start your mortgage process now.
Notable events this week:
Monday:
- PMI Manufacturing Index
- ISM Manufacturing Index
- Construction Spending
- Fedspeak
Tuesday:
- Fedspeak
Wednesday:
- ADP Employment Report
- International Trade
- Factory Orders
- ISM Non-Manufacturing Index
- EIA Petroleum Status
Thursday:
- Weekly Jobless Claims
Friday:
- Nonfarm Payrolls
from Total Mortgage Underwritings Blog http://ift.tt/1VMDF7S
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