Happy Friday, and 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?
Rates dip down to near 2016 lows
On Thursday, the Freddie Mac Private Mortgage Market Survey (PMMS) got released and it showed that mortgage rates fell down to near 2016 lows. The average rate on a 30-year fixed rate mortgage sunk six basis points down to 3.42% (0.5 points); the average rate on a 15-year fixed rate mortgage slipped four basis points to 2.74% (0.5 points; and the average rate on a 5-year ARM was the odd man out, rising one basis point to 2.81%.
If we look back at the PMMS archives, we can see that 3.42% is just one basis point higher than the 2016 low, recorded back in early July, a few weeks after the Brexit vote threw the markets into chaos. Data for the survey is collected early on in the week and often times, things change in the latter half of the week which make the results a lagging indicator. Things have remained fairly constant since the release of the report, which means that mortgage rates are still low.
Click here to get today’s latest mortgage rates.
Here is what Chief Economist at Freddie Mac Sean Becketti had to say about mortgage rates this week:
“Investors flocked to the safety of government bonds causing the 10-year Treasury yield to continue its descent following the FOMC’s decision to leave rates unchanged. The 30-year fixed-rate mortgage responded by dropping 6 basis points before landing at 3.42 percent–a ten-week low. The course of the economy is uncertain, yet consumers continue to be a bright spot. The September consumer confidence index is up 3 percent to 104.1, exceeding forecasts and reaching a new cycle high.”
What does this mean for me?
Mortgage rates are just one basis point above 2016 lows and only ten basis points above all time lows. If you’re wondering if that’s a lot–it isn’t. We’ve been in a low rate environment all year but these rates are truly some of the best we’ve seen. Whether you’re looking to refinance your current mortgage into a lower rate, or lock in a low rate on a purchase for years to come, right now is a great time to do it. There’re no immediate threats on the horizon for mortgage rates, but I would still recommend that you act sooner rather than later. The market is a finicky beast, and it’s devoured many a man who have tried to time it.
Click here to get today’s latest mortgage rates.
Today’s economic data:
Personal Income and Outlays
August was a flat month for consumer spending, with personal income only rising 0.2% from the prior month. The PCE price index rose a mere 0.1% month over month, putting the year over year change at 1.0%. The core PCE price index also grew modestly with a 0.2% reading, putting it at 1.7% year over year.
Notable events this week:
Monday:
- New Home Sales
- Fedspeak
Tuesday:
- S&P Case-Shiller HPI
- Consumer Confidence
- Fedpeak
Wednesday:
- Durable Goods
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- GDP
- International Trade
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
from Total Mortgage Underwritings Blog http://ift.tt/2d1bM8D
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