Welcome to the TMS current mortgage rates blog. There’s some economic data out today, but first, your daily 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 is on the rise this morning. Mortgage rates have a tendency to follow long-term government bond yields and are also moving higher. What is causing the rise? Consumer spending came in strong this morning, despite weak inflation, and financial market participants are running with any signs of strength they get these days. However, the report wasn’t strong enough to significantly bolster the Fed Fund futures belief in a 2016 rate hike. We’re still looking at about a 40% chance in December. That’s still not a bet I would make.
Click here to get today’s latest mortgage rates.
Of course, it’s a slow week, that’s really just a build up to Friday’s monthly employment situation report. Everyone is always all eyes on this report, and this month will be no different. Will we get another unexpectedly high number like June’s 287,000? It’s unlikely, with the consensus range between 150,000 and 215,000, If we did, though, that would really start to get the markets to seriously consider December as a contender for a quarter-point increase in the Federal Funds rate. The number of jobs added is the headline reading that everyone will be looking at, but average hourly earnings and the unemployment rate are also hold sway over the markets. We’ve gotten some surprising numbers this year and it’s entirely possible that will happen again. Only time will tell.
What does this mean for me?
Mortgage rates have been going up and down the past several days, but they’re fluctuating at levels that are historically still very low. If you’re searching for a home to buy or your’re thinking about refinancing your current mortgage, now is a good time to do it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Personal Income and Outlays
Inflation continues to be weak, but spending remains somewhat strong. Personal income went up 0.2% in June. Consumer spending rose 0.4%. The PCE price index and the Core PCE price index are both up only 0.1%. That puts the PCE Price index and Core PCE index at a yearly change of 0.9% and 1.6%, respectively.
Miscellanea:
- The Bank of Japan has decided that another $45 billion of easing is their latest attempt to stimulate their economy.
- The Bank of England makes their own decision about monetary policy on Thursday. It is expected that they will offer up a substantial dose of stimulus.
Notable events this week:
Monday:
- PMI Manufacturing Index
- ISM Manufacturing Index
Tuesday:
- Personal Income and Outlays
Wednesday:
- ADP Employment Report
- ISM Non-Manufacturing Index
Thursday:
- Weekly Initial Jobless Claims
- Factory Orders
Friday:
- Nonfarm Payrolls
- International Trade
from Total Mortgage Underwritings Blog http://ift.tt/2aKm0wI
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