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 for an overview of what’s happening this week.
Market Outlook 5.8.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Geopolitics back at the forefront: Rates move lower
Trump fires FBI Director
Mortgage rates are down slightly this morning as the unexpected firing of FBI Chief, James Comey, caught investors (along with everyone else) off guard. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are headed) is down about two basis points from yesterday’s close. That puts it back down under the 2.4% threshold that was breached for the first time in six weeks yesterday.
Click here to get today’s latest mortgage rates (May. 10, 2017).
Mortgage rates had been on a slow climb this week, but the abrupt decision from the President is, for the moment, putting a halt to that ascent. It’s good news for borrowers, but it’s unlikely that the dip will last very long.
Usually in this type of situation investors get a little skittish when the news breaks but then no more than a few hours later they find their footing and everything goes back to normal. Of course, if other news about the situation comes out and creates more of a stir, we could see rates stay low until at least tomorrow.
North Korea to continue nuclear tests
On the other side of the world, a North Korean ambassador to the UK said that the country is planning on moving forward with its sixth nuclear test. Here it is in his own words:
“In regards to the sixth nuclear test, I do not know the scheduled time for it, as I am here in the UK, not in my home country… However, I can say that the nuclear test will be conducted at the place and time as decided by our supreme leader, Kim Jong Un.”
It’s not really surprising that this type of rhetoric would continue to come out of North Korea, but the fact that it’s said at all is enough to unsettle some financial market participants. In general, the more certainty there is in the world, the more investors will move into stocks, thus pushing up bond yields and mortgage rates.
June rate hike
Checking in with the CME Group’s fed fund futures, the chances of a quarter point rate increase at the June meeting is still at 87.7%. That’s right where it was yesterday, and certainly makes it seem like it’s going to happen.
Boston Fed President Eric Rosengren spoke yesterday but didn’t make any direct comments about the June meeting. Rather, he took the opportunity to voice concerns about reform to Fannie Mae and Freddie Mac, and how it could potentially disrupt real estate markets across the country.
What does this mean for me?
It’s a good day to lock a rate
With rates down slightly, borrowers get some unexpected relief from rising rates. That means that today is a great time for anyone to lock a rate on a purchase or refinance. It seems more likely than not that rates will resume their climb as the week unfolds, so getting in on this dip would be a good move for many borrowers.
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:
Import and Export Prices
Import and export prices rose month over month is April, 0.5% and 0.2%, respectively. Both of those readings are above what economists had predicted, which is always good news.
EIA Petroleum Status Report
For the week of 5/5/17:
- Crude oil: -0.9 M barrels
- Gasoline: 0.2 M barrels
- Distillates: -0.6 M barrels
10-Yr Note Auction
There will be a 10-year Treasury note auction today at 1:00pm.
Treasury Budget
The U.S. Treasury will release their monthly budget report at 2:00pm.
Fedspeak
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- NFIB Small Business Optimism Index
- JOLTS
- Fedspeak
Wednesday:
- Import and Export Prices
- EIA Petroleum Status Report
- Fedspeak
- 10-Yr Note Auction
- Treasury Budget
Thursday:
- Fedspeak
- Jobless Claims
- PPI-FD
Friday:
- Consumer Price Index
- Retail Sales
- Fedspeak
- Business Inventories
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2qT152j
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