Happy Friday, and welcome to the Total Mortgage 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?
Treasury yields are on the rise this morning after a string of strong data was released, including PPI, retail sales, and consumer sentiment. The yield on the 10-year U.S. Treasury note is up to 2.42%, which is 5 basis points up from yesterday’s close, and just 1 basis point off from where we started the week. Fed Chair Janet Yellen spoke yesterday evening and stated that “Short term I would say I don’t think there are serious obstacles. I see the economy as doing quite well.” The Fed Fund futures is still showing that June is the most likely candidate for an increase in the federal funds rate, but the odds have recently gone up a few percentage points for May.
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates are back on the rise today after sinking lower for most of the week. This type of volatility is likely to continue and intensify next week and the coming months as the Trump administration takes office.
Today’s economic data:
PPI-FD
PPI-FD rose 0.3% month over month in December, putting it at 1.6% year over year. Less food and energy, PPI-FD rose 0.2% month over month and 1.6% year over year. PPI-FD less food, energy and trade services ticked up 0.1% month over month, making it 1.7% year over year. None of the yearly readings are over 2%, keeping concerns over the risk of a sudden spike in inflation at bay.
PPI
PPI for December rose 0.4%, putting it at 1.2%, year over year. PPI less food and energy went up 0.3% month over month, and 1.4% year over year.
Retail Sales
Retail sales for December came in at a respectable 0.6%. However, when you take out auto sales, that number drops down to 0.2%. Less autos and Gas, and we’re down to 0.0%. That final reading is what is used to gauge the holiday spending season, and at 0.0%, it’s not looking good. Sales for department and electronic/appliance stores fell 0.6% and 0.5%, respectively. Despite the poor performance in holiday spending, the strength in the headline reading was enough to bolster the economic outlook for financial market participants.
Fedspeak
Patrick Harker speaks at 9:30am.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- JOLTS
Wednesday:
- EIA Petroleum Status Report
- 10-year Note Auction
- Fedspeak
Thursday:
- Jobless Claims
- Fedspeak
- Import and Export Prices
Friday:
- PPI-FD
- PPI
- Retail Sales
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2jF0tGa
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