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?
Mortgage rates are falling to 2017 lows
Mortgage rates are taking a dive in the past 12 hours due to geo-political and domestic events. President Trump ordered an air strike last night around 8:30pm on an air base in Syria that is suspected of being the launching point for the recent chemical attacks there.
Click here to get today’s latest mortgage rates (Apr. 7, 2017).Investors immediately began to flood back into the “safe” play of government bonds, with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) down to a low of 2.295% at 10pm.
Some of the jitters were shaken out in overnight trading, causing bond yields to rise, but then the monthly jobs report came out and showed that the U.S. economy only added 98,000 jobs in March. That number is substantially lower than the 175,000 that economists had predicted. Average hourly earnings also failed to move off of their prior position of 0.2%.
Click here to get today’s latest mortgage rates (Apr. 7, 2017).On the positive side, the unemployment rate dropped to 4.5%, beating out expectations for 4.7%. Some pundits are blaming the weather, saying that a warmer than usual temperatures caused hiring to happen in February when it would normally take place in March.
Whatever the cause was, financial market participants immediately ran with the disappointing headline reading and went back into government bonds, erasing any gains that were made overnight. The yield on the 10-year yield fell down to a low of 2.289%, which is the lowest reading since November.
Click here to get today’s latest mortgage rates (Apr. 7, 2017).Right now the yield is at 2.318%. Mortgage rates tend to follow in the footsteps of the 10-year yield, so rates are moving lower this morning. And as we saw yesterday in the Freddie Mac Primary Mortgage Market Survey, rates were just a touch above 2017 lows. With what has happened in the past 24 hours, rates are almost certainly sinking down to a new year low.
How long will they stay there?
It’s hard to say at the moment, as we currently don’t know how the situation in Syria will unfold. However, it’s not unusual in these types of situations for investors to regain their footing and head back into equities. That’s what we saw in overnight trading, and it’s very possible that will happen today, causing rates to move off of their current lows by as early as this afternoon.
What does this mean for me?
Take advantage of the dip and lock in a rate right now
Mortgage rates are moving down to their lowest point this year. That’s great news for borrowers who are looking to lock in a rate on a purchase or a refinance. The decline is based on current events, and there are no guarantee that they will stay this low for multiple trading sessions.
That means that anyone who wants to capitalize on rates at 2017 lows should take action immediately.
It only takes a few minutes to fill out some information and get a personalized rate quote on our website, or a quick phone call to one of our experienced mortgage specialists to get started.
Today’s economic data:
Employment Situation
- 98,000 jobs added
- Unemployment rate at 4.5%
- Average hourly earnings at 2.7% Y/Y
Fedspeak
- New York Fed President William Dudley speaks at 12:15pm
Notable events this week:
Monday:
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- Fedspeak
Tuesday:
- International Trade
- Fedspeak
Wednesday:
- ADP Employment Report
- ISM Non-Mfg Index
- EIA Petroleum Status Report
- FOMC Minutes
Thursday:
- Jobless Claims
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2oMuji5
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