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 fall to new 2017 lows
The Freddie Mac Primary Mortgage Market Survey gets released every Thursday at 10:00am, and is one of the best barometers of the current mortgage rate environment. Here are the numbers for this week:
- The average rate on a 30-year fixed rate mortgage fell seven basis points to 3.95% (0.5 points).
- The average rate on a 15-year fixed rate mortgage dropped eight basis points to 3.19% (0.5 points).
- The average rate on a 5-year adjustable rate mortgage sunk six basis points to 3.07% (0.4 points).
It’s a very solid report that shows new year lows for all three mortgage types. The previous lows for the 30, 15, and 5/1 were 3.97%, 3.23%, and 3.10%, respectively. Those readings were from April 20, and the main driver then was mounting geopolitical tension.
Click here to get today’s latest mortgage rates (May. 25, 2017).
This time around the situation is only slightly different, with the main drop happening last week after the domestic political situation with President Trump and former FBI director James Comey. Investors rushed into the safe haven of long-term government bonds when that news broke, and the economic data that has since come out hasn’t been strong enough to push bond yields that much higher.
Of course, it’s important to note that economic reports are lagging indicators by their very nature, so the survey doesn’t necessarily reflect current market conditions. However, if we look at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are heading), we can see that it’s at 2.25% right now.
Find out what your custom rate would be in three minutes.
That’s only three basis points higher from last week’s low point of 2.22% on Wednesday, which means that mortgage rates are still at some of the lowest levels that they’ve been at all year. To get a broader perspective of where we’re at right now, the highest reading for the 30-year fixed rate in 2017 was 4.30% back in mid-March.
That’s over thirty basis points from where rates are at the moment, and will make a significant impact on your monthly payment. On a $200,000 loan, if you got the current reading in the PMMS for the 30-year fixed rate (3.95%) that would mean you’d save nearly $60 every month on your mortgage payment compared to what you would pay with the highest reading of the year (4.30%).
There are a lot of factors that go into your own personal rate, but the current rate environment is clearly very favorable for borrowers.
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What does this mean for me?
Lock in today while rates are low
This is only the second time all year that rates have dipped below the 4.00% threshold, and there’s no telling how long they will stay there. The prudent decision would be to lock now while you have the sure thing.
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:
International Trade in Goods
The trade deficit widened to $67.6 billion in April.
Jobless Claims
Applications for U.S. unemployment benefits rose by 1,000 for the week of 5/20/17 to 234,000. That’s just below economists’ expectations for 237,000. The four-week moving average is now at 235,250.
Fedspeak
- Fed Governor Lael Brainard will speak at 10:0am.
- St. Louis Fed President James Bullard will speak at 10:00pm.
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- PMI composite Flash
- New Home Sales
- Richmond Fed Mfg Index
- Fedspeak
Wednesday:
- FHFA House Price Index
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Minutes
- Fedspeak
Thursday:
- International Trade in Goods
- Jobless Claims
- Fedspeak
Friday:
- Durable Goods Orders
- GDP
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2qggdad
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