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 still near 2017 lows
All things considered, this week was pretty tame. With so much happening on the geopolitical chessboard, everyone was wondering if there would be another pointed event this week. That didn’t happen. The biggest swing took place on Tuesday, when poor economic data and lingering global concerns pushed investors further into the bond market.
Click here to get today’s latest mortgage rates (Apr. 21, 2017).Notably, the yield on the 10-year Treasury note–the best market indicator of where mortgage rates are headed–fell down to a 5-month low. However, a trickle of positive economic data and polls eases investor concern over the French president election (more on that below) brought the 10-year yield back up over where it started the week. At 2.22%, it’s still below the important threshold of 2.3%, and is low enough for mortgage rates to stay around 2017 lows.
Yesterday we got the Freddie Mac Primary Mortgage Market Survey (PMMS), which showed mortgage rates at new 2017 lows. Here’s the breakdown:
- The average rate on a 30-year fixed rate mortgage dropped eleven basis points to 3.97% (0.5 points)
- The average rate on a 15-year fixed rate mortgage fell eleven basis points to 3.23% (0.5 points)
- The average rates on a 5-year adjustable rate mortgage sunk eight basis points to 3.10% (0.4 points)
Notably, this is the first time in 2017 that the 30-year has dropped below 4% in the PMMS. As stated, rates have inched up a little bit since the data for the PMMS was collected early on in the week, but we’re still dealing with a very accommodating rate environment.
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First round of French presidential election on Sunday
The time is drawing near for citizens of France to decide who they want to be their next President. Investors have been oscillating this way and that the past couple months as they deal with the latest polls. It’s an incredibly close race, with voters spread thin among the four leading candidates. The concern for the markets is that one (or both) pro-Frexit candidates (Marine Le Pen and Jean Luc Melenchon) will make it to the second round.
Find out how much you could save with your new mortgage rate.
The worst case scenario, and the only one that would truly send markets sprawling on Monday, would be if both of those candidates made it to the final run-off. Polls are giving that about a 25% chance of happening. The path that many pundits see unfolding is Marine Le Pen and Emmanuel Macron making it to the second round, with Macron coming out on top. There are no guarantees, though, and financial market participants will certainly be keeping an eye on France come Sunday.
What does this mean for me?
It’s a great time to lock
If you’re on the market for a new home or a refinance, consider yourself lucky because we’re dealing with a very low rate environment right now. There’s really no telling when rates will move higher, so the smart decision would be to take action today.
It only takes a few minutes to fill out some information and get a personalized rate quote on our website, or to make a quick phone call to one of our experienced mortgage specialists to get started.
Today’s economic data:
Fedspeak
- Minneapolis Fed President Neel Kashkari at 9:30am
PMI Composite Flash
- It’s a slowdown for all readings in the April PMI flash. The compositie level is down 0.05 points to 52.7. Manufacturing is down 0.04 to 52.8. Services is down 0.04 to 52.5.
Existing Home Sales
- Existing home sales ticked up 4.4% in March to 5.71 M. That’s the best rate since February 2007.
Notable events this week:
Monday:
- Empire State Mfg Survey
- Housing Market Index
- Fedspeak
Tuesday:
- Housing Starts
- Fedspeak
- Industrial Production
Wednesday:
- EIA Petroleum Status Report
- Fedspeak
- Beige Book
Thursday:
- Fedspeak
- Jobless Claims
- Philly Fed Outlook
Friday:
- Fedspeak
- PMI Composite Flash
- Existing Home Sales
from Total Mortgage Underwritings Blog http://ift.tt/2p3jFn3
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