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?
Healthcare vote still looming
Yesterday the markets anxiously waited to hear if Trump’s healthcare bill would be passed through Congress. However, the day came and went and ultimately it was announced that the vote would be pushed back a day. So all eyes are once again on Capitol Hill this morning.
Click here to get today’s latest mortgage rates (Mar. 24, 2017).What does a healthcare bill have to do with mortgage rates? Well, investors see the event as a test for how quickly President Trump will be able to implement some of his policies. While some of his other plans, such as tax cuts and deregulation, will have a greater impact on the overall economy, investors will adjust their positions to account for a delay in implementation if the vote gets shot down.
Just this morning Treasury Secretary Steven Mnuchin said that once the healthcare issue is resolved the Trump administration will quickly get to work on tax cuts for individuals and corporations. Mnuchin stated that he’s going to push to get reform passed by the end of August.
Click here to get today’s latest mortgage rates (Mar. 24, 2017).Of course, Mnuchin is working off of the assumption that the healthcare bill will get passed today. Some have argued that if it doesn’t pass they can still get to work on tax reform, but there’s really no denying that the timing will get thrown off.
Market Reaction
All of the drama with the healthcare showdown is causing treasury yields to head lower today. The yield on the U.S. 10-year yield (the best market indicator of where mortgage rates are going) is at 2.413%, which is down one basis point from yesterday’s close. Mortgage rates usually trail behind the 10-year yield, so rates are mostly flat to slightly lower.
Freddie Mac PMMS
The Freddie Mac Private Mortgage Market Survey showed yesterday that mortgage rates fell this week, with the average rate on the 30-year fixed tumbling by the biggest margin in two months. Here’s what happened:
- The average rate on a 30-year fixed rate mortgage dropped by seven basis points to 4.23% (0.5 points).
- The average rate on a 15-year fixed rate mortgage fell six basis points to 3.44% (0.5 points).
- The average rate on a 5-year adjustable rate mortgage ticked down four basis points to 3.24% (0.5 points).
Data for the report is collected early on in the week, and since then mortgage rates have inched down a few more basis points. Depending on what happens with the healthcare situation, mortgage rates could be heading lower again in next week’s survey.
What does this mean for me?
It’s another day of keeping an eye on the markets to see if mortgage rates will swing. There’s definitely the potential for rates to move lower if the markets are disappointed by a no vote. If that happens, today would be a great day for anyone to lock in a rate on a purchase or refinance.
Today’s economic data:
Fedspeak
- Chicago Fed President Charles Evans at 8:30am
- San Francisco Fed President John Williams at 8:30am & 1:00pm
- St. Louis Fed President James Bullard at 9:05am
- New York Fed President William Dudley at 10:00am
Durable Goods Orders
Durable goods orders increased by 1.7% in February. That’s 1.5% higher than expectations. It’s good news for the economy as companies are optimistic about output in the coming months.
PMI Composite Flash
All aspects of the PMI flash for March came in just under expectations. Employment in the service sector is down. It’s kind of a contrast against the durable goods report, in that it points to a slowdown in the economy.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Fedspeak
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Fedspeak
- Jobless Claims
- New Home Sales
Friday:
- Fedspeak
- Durable Goods Orders
- PMI Composite Flash
from Total Mortgage Underwritings Blog http://ift.tt/2mzzCkT
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