Happy Cinco de Mayo 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) came out this morning, and it’s showing that mortgage rates ticked back down this week. The average rate on a 30-year fixed is 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). The 30-year fixed rate now sits just three basis points above the low of the year.
Tomorow’s jobs report is the big market mover of the week. Mortgage rates could fall or rise depending on what kind of number we get. Nearly everyone is expecting a strong report, which presumably could put June on the table for a rate hike. I don’t June has a chance either way, but some people would. At any rate, today is all about getting to tomorrow.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
It’s good news. Current mortgage rates are still extremely accommodative. For those on the hunt for a house, now is a great time to lock in a rate and make a purchase. There is also the opportunity for those who already have a mortgage to refinance at a lower rate.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Weekly Jobless Claims are Up
The number of applications for U.S. unemployment benefits went up 17,000 to 274,000 for the week of April 30. The 4-week moving average went up 2,000 to 258,000. Despite the rise, economists are still predicting that the nonfarm payroll report will come in tomorrow with a strong 200,000 jobs added.
Other news:
Shade thrown at the Fed
Famed hedge fund manager Stanley Druckenmiller blasted the Fed at the 21st annual Sohn Investment Conference, saying:
“I have argued that the myopic policymakers have no end game… They stumble from one short-term fiscal or monetary stimulus to the next despite overwhelming evidence that they only produce a sugar high and grow unproductive debt that impedes long-term growth. Moreover, the continued decline of global growth despite unprecedented stimulus the past decade suggest we have borrowed so much from our future and for so long that the chickens are now coming home to roost.”
Trump says Yellen wouldn’t last
Donald Trump said this morning that if he were elected President, he would replace Federal Reserve Chairwoman Janet Yellen in 2018 after her term expires. He concedes that it has nothing to do with policy, as they’re both low-interest rate enthusiasts, and everything to do with politics. Yellen isn’t a Republican and so she’d have to go.
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/1VLijb1
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