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?
The yield on the U.S. 10-year Treasury note climbed up yesterday to 1.87%. That didn’t last, though, as the yield has been steadily falling this morning and is currently at 1.79%. It’s impossible to pinpoint what exactly causes sudden changes in the market, but we do know that the Chinese manufacturing sector came out with weak data overnight, and the Reserve Bank of Australia unexpectedly cut their benchmark interest rate to an all-time low.
These events seem to have spooked global markets and the U.S. is feeling the jitters along with everyone else. Everyone wants to rush into the relative safety of government bonds until the fear wears off.
Mortgage rates typically trail behind the 10-year yield, so the downward moment we’re currently seeing is good news for homebuyers. We’ll have to see what happens during the rest of the day, but for now, it seems like mortgage rates are moving lower.
The markets are still very skeptical of a 2016 rate hike. The odds for the event taking place in June, July, September, November, and December are 13%, 30%, 42%, 46%, and 59%, respectively.
Don’t wait for rates to rise. Start your mortgage process now.
What does this mean for me?
Once again, it means that mortgage rates are sitting at extremely favorable levels. The opportunity is definitely there for some homeowners to refinance and save on their monthly mortgage payments. For borrowers who are seeking to purchase a home, now is a great time to lock in a low rate. While I don’t foresee rates spiking up anytime soon, I still think that you’re better off acting sooner rather than later.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Fedspeak
Atlanta Fed President Dennis Lockhart spoke yesterday and said that he had no strong belief on what should happen in June. He did say that it’s possible, depending on what kind of data we get between now and then. He also reinforced the notion that June is a “live” meeting and that he thinks the markets aren’t giving it the odds it deserves. Lockhart did admit, however, that economic growth and inflation are currently not strong enough to warrant any action in June.
San Francisco Fed President John Williams made it clear that he still believes the U.C. economy can handle higher interest rates. He didn’t make any concrete claims on when the next rate hike should happen, merely stating that it should take place “over the next few years”. When everyone is wondering what will happen in six weeks, saying that you think rates should return to normal over the next few years brings very little to the table.
That kind of statement is already assumed in the current economic environment. He went on to talk about how he doesn’t see a crisis brewing, but that he does fear the time when “people forget about the financial crisis, when they forget about the terrible things that happened.”
Cleveland Fed President Loretta Mester chairs a panel on monetary policy today, giving her a chance to offer up her own views on future rate hikes.
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/1Y5p453
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