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?
Markets are trying to steady their legs this morning as they deal with the repercussions from President Trump’s controversial executive order on immigration. After last week’s historic Dow 20,000, investors were giddily buying into the Trump rally.
Now, all of the major indexes are trading in the red (with the Dow below 20,000), and investors are uncertain about what the future might hold. Some pundits are wondering whether or not these early executive orders are hurting Trump’s ability to get things done later on down the road. Throughout his campaign, he promised economic growth for the U.S. economy, in large part due to infrastructure spending, deregulation, and tax cuts.
Treasury yields took a hit this morning, falling by a few basis points. The yield on the 10-year U.S. Treasury note is now 2.48%. Mortgage rates typically follow the direction of the 10-year yield, so they’re inching lower this morning.
Click here to get today’s latest mortgage rates.
While the markets are currently chewing on the uncertainty brought about by Trump, the week ahead has two major opportunities to get things back on track. The first comes on Wednesday when they Federal Reserve’s Federal Open Market Committee (FOMC) concludes its two day meeting. There won’t be a press conference with Fed Chair Janet Yellen, but there will be a written statement that could offer up some much sought after forward guidance.
It’s the first meeting after the Fed raised their benchmark interest rate in December, as well as the first meeting since Donald Trump became president. Per usual, everyone and their mother will be scouring through the written statement for clues about when the Fed plans to raise rates again. At their last meeting, they laid out plans for three rate hikes in 2017, and several Fed officials have recently said they are still in favor of that plan. The Fed Fund futures is still showing June as the next meeting with over a 50% chance at a rate hike.
Click here to get today’s latest mortgage rates.
What does this mean for me?
The current market volatility is something that we’ve been expecting. While there’s going to be a few bumps here and there, the long-term trajectory for mortgage rates is still headed higher. I think that anyone looking to refinance their current mortgage or lock in a rate on a purchase will be better off acting sooner rather than later.
Today’s economic data:
Personal Income and Outlays
Personal income rose 0.3% in December. Core PCE rose by 0.1%, month over month, and 1.7% year over year.
Pending Home Sales
The pending home sales index for December is at 1.6%. That’s a strong showing after the prior reading of -2.5%.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Personal Income and Outlays
- Pending Home Sales
Tuesday:
- FOMC Meeting Begins
- S&P Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
Wednesday:
- ISM Mfg Index
- EIA Petroleum Status Report
- ADP Employment Report
- FOMC Meeting Ends
Thursday:
- Jobless Claims
Friday:
- Monthly Jobs Report
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2jKWbjp
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