Welcome to the Total Mortgage Current Mortgage Rates Blog. Here’s your daily mortgage rate forecast/advice.
Where are mortgage rates going?
Trump’s speech on Tuesday could put pressure on mortgage rates
Mortgage rates have basically remained flat for about a month now. On January 26th, the Freddie Mac PMMS showed the average rate on a 30-year fixed rate mortgage to be 4.19%, while last Thursday it came in at 4.16%. Surprisingly, the yield on the U.S. 10-year Treasury note has fluctuated much more than mortgage rates (last week was largest weekly drop since December). Normally, mortgage rates would have followed suit, but they just aren’t being swayed as easily right now.
Click here to get today’s latest mortgage rates (Feb. 27, 2017).There is the potential for a big shift tomorrow night when Donald Trump addresses Congress for the first time. Financial market participants have been eagerly waiting for well over a month to get some details about Trump’s economic policies, and patience is running low. If Trump doesn’t give any specifics (ideally numbers and deadlines) about the nation’s budget and his “phenomenal” tax plan, some serious steam might be taken out of the Trump rally.
That would most likely put downward pressure on mortgage rates. It’s not a hard and fast rule, but generally when the markets take a hit rates move lower. On the other hand, if Trump comes out and clearly outlines some of his plans, that could send the markets and mortgage rates higher. There’s so much uncertainty anytime President Trump speaks, which makes it very difficult to hand your hat on any given outcome.
Click here to get today’s latest mortgage rates (Feb. 27, 2017).Folks over at the Federal Reserve will no doubt be tuning in to see what Trump’s policies mean for their own monetary policy plans. The upcoming March meeting still doesn’t seem likely to contain a rate hike (Fed Fund futures give it about a 25% chance), but that could change if the markets really like what Trump has to say.
What does this mean for me?
Mortgage rates continue to remain at levels that are very low historically. That’s good news for anyone looking to refinance or purchase a home. Every week it seems there is a threat to send rates higher, but so far that hasn’t happened.
Today’s economic data:
Durable Goods Orders
There was a lot of optimism about the factory sector heading into this report, but unfortunately, the air has been sucked out of that balloon. Core capital goods fell 0.4% in January, and unfilled orders also sunk 0.4%, and have now been in the negative for seven out of the last eight months. Until foreign demand for U.S. factory goods picks up, we can’t expect much to change here.
Fedspeak
Dallas Fed President Robert Kaplan will speak today at 11:00am.
Notable events this week:
Monday:
- Durable Goods Orders
- Fedspeak
Tuesday:
- GDP
- International Trade in Goods
- S&P Corelogic Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
- Fedspeak
Wednesday:
- Personal Income and Outlays
- ISM Mfg Index
- EIA Petroleum Status Report
- Beige Book
- Fedspeak
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Fedspeak
- ISM Non Mfg Index
from Total Mortgage Underwritings Blog http://ift.tt/2l4Hryh
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