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 and mortgage rates on the rise
Treasury yields saw their largest daily gain in six weeks on Tuesday, and they are continuing to rise today. The yield on the U.S. 10-year Treasury note is up to 2.50%, four tenths higher than Tuesday’s close. Mortgage rates typically follow the lead of the 10-year yield, which means they are also on the rise today.
Dow 20,000
After several weeks of near misses, the Dow Jones Industrial average finally broke above 20,000 for the first time ever. It’s a historic milestone that reflects the optimism among business leaders about where the U.S. economy is headed, at least partly due to to promises made from President Trump. Apparently many investors have finally decided to go all-in with their bets on tax cuts, deregulation, and infrastructure spending. Whether or not the stock surge lasts will depend on how the Trump administration can now walk the walk. Trump is expected to sign an executive order on construction of the Mexican border wall today.
Brexit update
Across the pond, the U.K. Supreme Court voted in favor of having both houses of Parliament involved in the Brexit process. The House of Commons and the House of Lords will each have to grant consent before the U.K. can begin to exit the E.U. With both houses involved, the chances are now greater for a ‘soft Brexit’–in which the U.K. might still have access to the E.U.’s single market. It’s a turning of the tide after last week’s speech by Prime Minister Theresa May that signaled a ‘hard Brexit’ strategy. This decision caused investors to move more into stocks, pushing bond yields higher.
Click here to get today’s latest mortgage rates.
What does this mean for me?
As expected, mortgage rates are on the rise. If the economic data doesn’t completely disappoint towards the end of the week, rates could easily keep edging higher. That means that any borrowers looking to purchase a new home or refinance their current mortgage are most likely better off acting sooner rather than later.
Today’s economic data:
EIA Petroleum Status Report
For the week of 1/20:
- Crude oil: 2.3 M barrels
- Gasoline: 6.0 M barrels
- Distillates: -1.0 M barrels
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Nothing
Tuesday:
- PMI Manufacturing Index
- Existing Home Sales
Wednesday:
- EIA Petroleum Status Report
Thursday:
- International Trade
- Jobless Claims
- New Home Sales
Friday:
- Durable Goods Orders
- GDP
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2kjgNgL
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