Current Mortgage Rates for Thursday, February 16, 2017

Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.

Where are mortgage rates going?

Rates fall in Freddie Mac PMMS

The Freddie Mac Primary Mortgage Market Survey came out today (as it does every Thursday at 10am sharp), and surprisingly it showed that rates fell.

• The average rate on a 30-year fixed rate mortgage ticked two basis points lower to 4.15% (0.5 points).
• The average rate on a 15-year fixed rate mortgage fell by four basis points to 3.35% (0.5 points).
• The average rate on a 5-year adjustable rate mortgage dropped three basis points to 3.18% (0.4 points).

Click here to get today’s latest mortgage rates (Feb. 16, 2017).

It’s surprising because usually mortgage rates trail closely behind the yield on the U.S. 10-year Treasury note. Since the 10-year yield was trading around 2.35% in the middle of last week, and is currently at 2.47%, one would expect that mortgage rates would have risen. The fact that they did not rise, but instead moved lower is very unusual.

At the moment, there’s no clear reason why that happened. The current economic environment is riddled with uncertainty, and it could just be that 2017 is the year of unusual trends. It’s far too early to tell, though, and there’s plenty of time for things to straighten themselves out.

Here is what Chief Economist at Freddie Mac Sean Becketti had to say about the current mortgage rates trend:

“For the last 46 years, the 30-year mortgage rate has been almost perfectly correlated with the yield on the 10-year Treasury, but not this year. From Dec. 29, 2016, through today, the 30-year mortgage rate fell 17 basis points to this week’s reading of 4.15 percent. In contrast, the 10-year Treasury yield began and ended the same period at 2.49 percent. While we expect mortgage rates to fall into line with Treasury yields shortly, this just may be a year full of surprises.”

Click here to get today’s latest mortgage rates (Feb. 16, 2017).

What does this mean for me?

It’s good news for borrowers. Mortgage rates are trending lower (for now), meaning there are still opportunities for borrowers to capitalize on. I still recommend that anyone looking to refinance their current mortgage or purchase a new home act sooner rather than later, as the long-term trend for rates is likely to be higher.

Today’s economic data:

Housing Starts

• Housing starts fell 2.6% in January to 1.246 M.
• Housing Permits rose 4.6% to 1.285 M.

Jobless Claims

Applications filed for unemployment benefits rose 5,000 to 239,000. That is still lower than the 246,000 that was predicted by economists. The four-week moving average is now at 245,250.

Philly Fed Outlook

In the Bloomberg report, it’s stated that “The strength of the Philadelphia Fed’s general business conditions index is impossible to exaggerate.” It’s true–the Philly Fed absolutely crushed expectations for a reading of 19.3 when it posted a staggering 43.3. That’s the highest reading since 1984. The factory sector struggled all throughout 2016, but if this report rings true, 2017 should be much different.

Notable events this week:                                            

Monday:    

• Nothing

Tuesday:     

• PPI-FD
• Fedspeak

Wednesday:   

• CPI
• Retail Sales
• Industrial Production
• Fedspeak
• EIA Petroleum Status

Thursday:  

• Housing Starts
• Jobless Claims
• Philly Fed Outlook

Friday:  

• Nothing

Rates are still near record lows.  Contact us today to see if we can save you money on your home payments.

from Total Mortgage Underwritings Blog http://ift.tt/2lm8kg4