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 tumble after disappointing jobs report
The May Employment Situation came out this morning and it failed to live up to expectations with a headline reading of 138,000 jobs added. That’s just about 50,000 jobs below what economists had projected.
Click here to get today’s latest mortgage rates (Jun. 2, 2017).
The unemployment rate also came in below expectations at 4.3%. Everything else was basically unchanged from the previous report: average hourly earnings with a 0.2% growth month over month and 2.5% year over year, and the average workweek at 34.4 hours.
The market reaction for the 10-year Treasury yield (the best market indicator of where mortgage rates are headed) has been significant. Immediately following the release of the report, the yield fell down to 2.15%, but has since climbed back up a little to 2.17%, which is down about three basis points from the open (one basis point = 0.01) to 2.17%.
That’s the lowest it’s been since last November.
Mortgage rates typically follow the path of the 10-year yield, so rates are heading lower today. We saw yesterday in the Freddie Mac Primary Mortgage Market Survey that the 30-year fixed rate hit another new 2017 low at 3.94%. Now, with the way the market is reacting to the jobs report, rates are easily moving down further into uncharted territory.
Find out what your custom mortgage rate would be.
FOMC rate hike still likely
We’re in an interesting situation moving forward, as next week is the Fed blackout period (no speaking engagements for Fed officials) before their FOMC meeting on June 12-13. Investors were hoping that the monthly jobs report would be strong enough to firmly cement a quarter point increase in the federal funds rate.
That didn’t happen, but most investors (while acknowledging that there is some doubt) still believe that a rate hike is likely. The CME Group’s Fed Fund futures continues to show the probability of the target federal funds rate being bumped up to 1.00-1.25% at over 90%.
What some analysts are say, however, is that this report is more of a factor for later rate hike decisions. It could be the type of scenario where we see the Fed go through with the rate increase, but with a softer path charted in their dot plot.
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What does this mean for me?
Take advantage of rates at 2017 lows
Mortgage rates are at some of the lowest levels they’ve been at all year. They’re on track now to decline for the third consecutive week, providing borrowers with the opportunity to get a great deal on a purchase or refinance.
If you’ve been on the fence about taking action, you owe it to yourself to find out if you can save on your monthly payments or lock in a low rate on a new home.
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:
Monthly Employment Situation
- See above for detailed analysis.
International Trade
- The trade deficit widened to $47.6 B in April.
Notable events this week:
Monday:
- Markets Closed: Memorial Day
Tuesday:
- Personal Income and Outlays
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
Wednesday:
- Fedspeak
- Chicago PMI
- Pending Home Sales Index
- Beige Book
Thursday:
- ADP Employment Report
- Jobless Claims
- Productivity and Costs
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- EIA Petroleum Status
Friday:
- Monthly Employment Situation
- International Trade
from Total Mortgage Underwritings Blog http://ift.tt/2rj4bfo
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