Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice. Don’t feel like reading? Check out our market outlook series to get the scoop on this week’s big events.
Market Outlook 5.1.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Mortgage rates still in holding pattern ahead of Fed statement
Bond yields dropped lower to finish off the day yesterday after crude oil slumped to a 5-week low. The yield on the 10-year Treasury note closed at 2.281%–which was down about six basis points from the day’s high point. Since then, the yield has come up slightly to 2.296%.
That’s basically right where it started the week at. Mortgage rates tend to follow along the same trajectory as the 10-year yield, so there hasn’t been much change for rates so far this week. That’s not really surprising, given that the markets usually take a cautious approach ahead of any Fed meetings. It doesn’t matter that there is close to a zero percent chance that they will raise rates.
Click here to get today’s latest mortgage rates (May. 3, 2017).
No one knows what type of language or significant phrase will be in the written statement, and is therefore unwilling to make any major bets ahead of time. There’s always a lot of build up to FOMC meetings and sometimes the hype isn’t a complete letdown.
There are a lot of questions on the table for the Fed right now and it will be interesting to see which ones they choose to address. The most pressing issue for investors at the moment is whether or not a June rate hike is still on the table. The consensus is that a weak first quarter won’t worry an optimistic Fed, but it’s not a guarantee that they’ll be unperturbed by the recent slowdown.
Mortgage rates are still near 2017 lows. See how low your rate could be.
If the Fed were to come off as concerned about the state of things, that would certainly worry investors and could push mortgage rates lower. Conversely, the more optimistic the statement is, the more rates will rise. For anyone who’s grown impatient of all the speculation, the good news is that it all goes down this afternoon at 2:00pm.
If you want to get the news straight from the horse’s mouth, you can go to the Federal Reserve’s website. However, if you just want to get the lowdown, you won’t have to wait very long before pundits near and far take a fine tooth comb through every last letter.
What does this mean for me?
Pay attention to the Fed
If you’re on the hunt for a house or are considering a refinance, it’s important to pay attention to what the Fed says this afternoon. Mortgage rates could shift one way or another depending on what type of tone they take.
You can never count out the possibility of the Fed saying something that will send rates lower. If that were to happen, it would be a great opportunity for borrowers to get in on the dip and lock in a rate.
If you want 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.
Today’s economic data:
FOMC Meeting Ends
- The meeting will conclude at 2:00pm with a written statement.
ADP Employment Report
- The ADP employment report this morning is showing 177,000 jobs added in April. That’s just a little above the consensus reading for 170,000. While it’s not a guarantee that Friday’s Monthly Jobs report will mirror this report, it’s still a good sign of things to come. Unlike previous readings, the markets aren’t really biting on this report today.
ISM Non Manufacturing Report
- The ISM non mfg index came in at 57.5 for April. That’s up 2.3 points from the prior reading, and is even higher than the top end of the consensus range. New orders, at 63.2, are at their highest level in almost 12 years.
EIA Petroleum Status Report
For the week of 4/28/17:
- Crude oil: -0.9 M barrels
- Gasoline: 0.2 M barrels
- Distillates: -0.6 M barrels
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/2qyypbR
No comments:
Post a Comment