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. Investors this morning are a) pleased with the inflation readings in the CPI report and b) somewhat anxious about the first ECB meeting of 2017 tomorrow. The general consensus is that the ECB will continue to sell-off Treasurys. The yield on the 10-year U.S. treasury note is up five basis points from where it closed yesterday. Mortgage rates typically follow wherever the 10-year yield goes.
Fed Chair Janet Yellen is set to give a speech today, titled “The Goals of Monetary Policy and How We Pursue Them” at the Commonwealth Club in San Francisco. It’s always important to tune in and see what the head of the Federal Reserve is saying, but I wouldn’t expect any juicy hints about when the next rate hike is taking place.
Click here to get today’s latest mortgage rates.
What does this mean for me?
Mortgage rates are moving slightly higher today as we march toward Trump’s inauguration on Friday. Markets have been very volatile lately, but we haven’t seen any major swings. I expect more of the same over the next few days. Long-term, I still think rates are more likely to rise than fall. That means that borrowers should be better off acting sooner rather than later.
Today’s economic data:
Consumer Prices Index
The CPI for December rose by 0.3%. That puts them it at 2.1% year-over-year. The CPI less food and energy ticked up 0.2%, making it 2.2% year over year. This is the first report in 2.5 years where the overall rate has caught up to the core rate. There is definitely still some weakness in this report, but the overall reading is enough to put pressure on the Fed hawks to argue for a rate hike.
Industrial Production
Industrial production increased by 0.8% for December. Manufacturing rose by 0.2%. The capacity utilization rate is now 75.5%. The bad news in this report is the prior revision down to -0.7%.
Fedspeak
Today is a notable day for fedspeak. We have Minneapolis Fed President Neel Kashkari at 10am and Fed Chair Janet Yellen at 3pm.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Markets Closed: Martin Luther King Jr. Day
Tuesday:
- Fedspeak
Wednesday:
- Consumer Prices Index
- Industrial Production
- Fedspeak
Thursday:
- Housing Starts
- Jobless Claims
- Philly Fed Outlook
- EIA Petroleum Report
- Fedspeak
Friday:
- Fedspeak
- Trump Inauguration
from Total Mortgage Underwritings Blog http://ift.tt/2j9e48F
No comments:
Post a Comment