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?
Rates poised to stay near 2017 lows
Various geo-political events caused investors to move out of stocks and into the safe haven of government bonds. That pushed the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are headed) down to lows not seen since November. Similarly, mortgage rates posted 2017 lows in the Freddie Mac Primary Mortgage Market Survey on Thursday. Here were the numbers:
- The average rate on a 30-year fixed rate mortgage: 4.08% (0.5 points)
- The average rate on a 15-year fixed rate mortgage: 3.34% (0.5 points)
- The average rate on a 5-year adjustable rate mortgage: 3.18% (0.4 points)
Data for that report was collected early last week, and since then, rates have moved lower. The yield on the 10-year Treasury note is at 2.227% right now, compared to 2.368% last Monday. That’s a substantial one week decline, and if the trend continues, we’ll see last week’s 2017 lows for mortgage rates broken on Thursday.
Click here to get today’s latest mortgage rates (Apr. 17, 2017).With not much significant economic data out and only a few Fed officials with speaking engagements this week, what happens on the geo-political chessboard is likely to be the main market mover. In general, investors want to see these events come to a clear resolution. Uncertainty is the enemy for financial market participants looking to make major moves in the equities market.
The more we get a clear picture of what is to come, the more likely it is that mortgage rates will move back up. Obviously, due to the cloudy nature of these events, it’s difficult to predict when that will happen.
Here is a brief run-down of the events driving markets:
North Korea’s nuclear program
Tension continues between the United States and North Korea due to the latter’s nuclear weapons program. Over the weekend, national security adviser Lt. Gen. H.R. McMaster said that “this problem is coming to a head And so it’s time for us to undertake all actions we can, short of a military option, to try to resolve this peacefully.” North Korea attempted a missile launch on Sunday, but that effort failed.
The situation in Syria
After the airstrike a week and a half ago, there doesn’t seem to be any concrete strategy for further action. It’s the sort of situation that could slowly fizzle back off the radar or jump back the the forefront of the world’s attention at a moment’s notice. At any rate, it’s important to pay attention.
The French Election on Sunday
We’re entering the last workweek ahead of the first round of the French Presidential election. Most investors are concerned that either far-right candidate Marine Le Pen or far-left candidate Jean-Luc Melenchon will come out on top. Both candidates have openly called for a referendum for France to leave the European Union. We saw serious repercussions from the Brexit, and it’s likely that situation would repeat itself if France were to leave the E.U. The first round of the election will be followed up with a final run-off on May 7.
What does this mean for me?
It’s a great time to lock in a rate on a purchase or refinance
Mortgage rates are continuing to hang around 2017 lows. That’s great news for anyone looking to purchase a home or refinance their current mortgage. The opportunity is definitely there for some borrowers to save money on there monthly payments. While rates could conceivably move lower, it seems as though we’ve bottomed for now.
That means that anyone looking to take advantage of the dip down to 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:
Empire State Mfg Survey
The Empire State Mfg Survey’s General Business Index is showing a reading of 5.2 for April.
Housing Market Index
The housing market index for April fell by three points but remains at a very strong level.
Fedspeak
- Fed Vice Chairman Stanley Fischer will speak at 5:00pm today.
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/2nVm8k7
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