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?
Financial market participants are presently dealing with the probability that tomorrow’s December jobs report is going to be weaker than expected. This is based off of this morning’s ADP employment report that showed only 153,000 jobs added in December. Economists had been predicting that number would be closer to 175,000. In general, anytime economic data comes in softer than expected, stocks take a hit and government bonds see some gains.
That’s what is happening today, resulting in the 10-year treasury note yield falling from yesterday’s close of 2.44% to its current trading position of 2.39% (yields fall as demand pushes prices higher). The yield on the 10-year treasury note is the best market indicator of where mortgage rates are headed, with rates usually trailing behind. That means that mortgage rates are falling today. It’s good news for anyone looking to refinance or buy a home.
Rates drop in Freddie Mac PMMS
The first Freddie Mac Primary Mortgage Market Survey of 2017 is here and it’s showing that mortgage rates fell this week for the first time in over two months.
The average rate on a 30-year fixed rate mortgage is now 4.20% (0.5 points); the average rate on a 15-year fixed rate mortgage is 3.44% (0.5 points); the average rate on a 5-year ARM is 3.33% (0.4 points).
Here is what Chief Economist at Freddie Mac Sean Becketti had to say about mortgage rates this week:
“The 30-year mortgage rate fell this week for the first time since the presidential election, dropping 12 basis points to 4.20 percent. This marks the first time since 2014 that mortgage rates opened the year above 4 percent. Despite this week’s breather, the 66-basis point increase in the mortgage rate since November 3, is taking its toll–the MBA’s refinance index plunged 22 percent this week.”
Click here to get today’s latest mortgage rates.
What does this mean for me?
It’s a good day for borrowers as mortgage rates on the decline. This provides an opportunity for anyone looking to refinance or purchase a home to lock in a lower rate than will most likely be possible in a few weeks.
Today’s economic data:
ADP Employment Report
The ADP employment report this morning is showing that only 153,000 jobs were added in December. That’s almost 20,000 below the consensus for 172,000, and points toward a softer than expected number in tomorrow’s monthly jobs report.
Jobless Claims
Jobless claims for the week of 12/31 came in at 235,000. That’s a decline of 28,000 from the previous reading.
EIA Petroleum Status Report
For the week of 12/30:
- Crude oil: -7.1 M barrels
- Gasoline: 8.3 M barrels
- Distillates: 10.1 M barrels
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Markets Closed
Tuesday:
- PMI Mfg Index
- ISM Mfg Index
Wednesday:
- FOMC Minutes
Thursday:
- ADP Employment Report
- Jobless Claims
- EIA Petroleum Status Report
Friday:
- Employment Situation
- International Trade
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2jeOPFW
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