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 (Feb. 7, 2017).Where are mortgage rates going?
Fedspeak moves rates higher
After a steady fall on Monday, treasury yields and mortgage rates are back on the rise this morning. It’s mostly thanks to Philadelphia Fed President Patrick Harker, who spoke last night and firmly stated that investors should not count out a March rate hike just yet.
He said, “I think March is on the table. I would never take a meeting off the table.” His statement is a response to a jobs report, that many financial market participants saw as a nail in the coffin for the March meeting due to the almost non-existent wage growth. It’s been a while since we’ve seen this kind of Fed jawboning, and so far, investors aren’t buying what Mr. Harker is selling.
The Fed Fund futures is currently showing that March has an 8.9% chance, which is exactly where it was yesterday. It seems that it’s going to take more than one Fed official to revive public opinion on the matter. Real change will is likely to only happen once some hard economic data gets released that points toward surging inflation and and a strengthening economy.
The next opportunity for a market moving report comes next Tuesday with the release of the Producer Price Index. Until then, we’re left with several speaking engagements from Fed officials. It will be interesting to see if they come off as openly optimistic about March as Harker.
Click here to get today’s latest mortgage rates (Feb. 7, 2017).What does this mean for me?
Up and down we go. If the Fed keeps fanning the flames of a rate hike in March, we could see mortgage rates rise. However, unless there is meaningful data to back up their talk, I don’t expect rates to move that much higher. That means that right now is a good time for anyone on the hunt for a house, or thinking about refinancing to check in and take action.
Today’s economic data:
International Trade
The good news is that the U.S. trade deficit shrunk from a revised $45.7 B in November to $44.3 B in December. The bad news is that overall in 2016, the trade deficit rose to $502.3 B–its highest level in four years.
JOLTS
The Labor Department’s Job Openings and Labor Turnover Survey is showing that there were 5.501 M job openings in December. That’s not far off from the revised November reading of 5.505 M. There’s definitely a strong demand for labor at the moment, but finding the right people for the job seems to be somewhat of a struggle for employers.
Click here to get today’s latest mortgage rates (Feb. 7, 2017).Notable events this week:
Monday:
- Fedspeak
Tuesday:
- International Trade
- JOLTS
Wednesday:
- EIA Petroleum Status Report
- 10-Year Note Auction
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Import and Export Prices
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2jYCqGJ
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