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?
Strong jobs report doesn’t have much effect on rates
The monthly jobs report came in today showing that 211,000 jobs private sector jobs were added to the U.S. economy in April. That’s a very healthy number and is decently above the consensus for 185,000. The unemployment rate unexpectedly dropped down to 4.4%, which is close to a 10-year low. Average hourly earnings were less impressive, coming in with a gain of only 0.3% and a revised prior reading of 0.1%, putting the year on year rate at 2.5%.
Click here to get today’s latest mortgage rates (May. 5, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) has barely budged so far today. It’s kind of an interesting market reaction, because one would normally expect this type of jobs report to push yields higher. At 2.35%, it’s up about five basis points from where it started the week.
That means that mortgage rates also ticked up a little this week, but the situation could have been much worse. Stepping back and looking at the big picture, mortgage rates are still not too far off of 2017 lows.
The Freddie Mac Primary Mortgage Market Survey had the average rate on a 30-year fixed rate edge lower to 4.02% this week. Data for that report is collected early on in the week and therefore doesn’t reflect the rise we saw on Wednesday afternoon after the Fed meeting, but it still shows that rates have a ways to go before they get anywhere that is even close to being considered unaccommodating.
French Presidential Election
The French presidential election will come to a conclusion this Sunday. The most recent polls are showing that the centrist candidate Emmanuel Macron will defeat far-right candidate Marine Le Pen by getting 62% of the votes. It’s getting to the point where almost no one believes that Le Pen will win.
Click here to get today’s latest mortgage rates (May. 5, 2017).
The U.S. markets already breathed their (modest) sigh of relief after the first round of elections two week ago, and there isn’t likely to be much market reaction unless Le Pen steals the win at the last minute.
If that were to happen, it would certainly create a panic in the global markets and mortgage rates would likely sink as investors move back into the safe-haven of government bonds.
Despite the unlikeliness of that outcome, it’s still important to check in a see what the final vote is on Sunday.
What does this mean for me?
Good time to take action
Mortgage rates moved a little higher this week but are still at very favorable levels for borrowers. If you’ve been thinking about locking in a rate on a purchase or refinance, right now might be a great time to take action.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. If you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
- Employment Situation
- Fedspeak
Notable events this week:
Monday:
- Personal Income and Outlays
- PMI Manufacturing Index
- ISM manufacturing Index
- Construction Spending
Tuesday:
- FOMC Meeting Begins
Wednesday:
- FOMC Meeting Ends
- ADP Employment Report
- ISM Non Manufacturing Report
- EIA Petroleum Status Report
Thursday:
- International Trade
- Jobless Claims
Friday:
- Employment Situation
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2pOaib3
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