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 down slightly this morning
It’s the first day of trading for the second quarter and all of the major U.S. indexes are slightly lower from where they opened.
The best market indicator of where mortgage rates are headed–the yield on the U.S. 10-year Treasury note–is currently down 0.029 from where it previously closed. That puts it at 2.355%. The bond market had it’s fair share of fluctuations in Q1, with the 10-year yield bottoming out at 2.314% on 2/24/17 and peaking at 2.626% on 3/13/17. In the end, though, it’s not far off from where it started the year at 2.441%.
Click here to get today’s latest mortgage rates (Apr. 3, 2017).Mortgage rates typically follow the path of the 10-year yield, and while they weren’t always moving in tandem the past three months, the over-arching trends were similar. According to the Freddie Mac Primary Mortgage Market Survey (PMMS) the lowest average rate on a 30-year fixed rate mortgage was 4.09% on 1/19/17, while the highest reading came in at 4.30% on 3/15/17. Since then, mortgage rates have moved back to near where they were at the start of the year, with the average rate on a 30-year fixed at 4.14% last Thursday.
March Employment Situation
Arguably the biggest market moving report every month is the Employment Report, a.k.a. the monthly jobs report. It gets released on the first Friday of every month, and investors always check in to see how the labor market is doing. The past two months we’ve gotten strong than expected growth, with 235,000 and 238,000 jobs added in February and January, respectively.
Click here to get today’s latest mortgage rates (Apr. 3, 2017).However, economists have dialed back their projections for March, calling for 178,000 jobs added. That’s still a respectable reading, and would most likely satisfy both investors and Fed officials making the case for an upcoming rate hike. Their case would be further bolstered if the 0.3% gain in average hourly earnings comes true. Positive economic data tends to put upward pressure on mortgage rates, so if things go as planned, rates could move higher on Friday.
What does this mean for me?
Mortgage rates are down a touch this morning. They’re hovering right above 2017 lows, so right now is a great time for anyone looking lock in a rate on a purchase or refinance. You can get a personalized rate quote here, or call one of our loan officers to get started.
Today’s economic data:
PMI Manufacturing Index
The final reading for PMI in March is 53.3. That’s down from the prior reading of 54.2. It’s been a steady decline the past three months for PMI. New orders, inventories, and output have all slowed.
ISM Mfg Index
The ISM Mfg index also fell in March to 57.2, from 57.7 in February. This is the first time since August that the ISM index has ticked lower. February was an unusually high report so a decline of 0.5 still makes this a respectable report.
Construction Spending
Construction spending got a boost in February, moving higher by 0.8%. That puts the year over year growth at 3.0%. The housing market is struggling to keep up with demand, so the fact that permits for single and multi family units are on the rise is a welcomed sign.
Fedspeak
- New York Fed President William Dudley at 10:30am
- Richmond Fed President Jeffrey Lacker at 5:00pm
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/2otC5NN
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