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 still near 2017 lows
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are heading) is up a little over one basis point to start the week. Yields are trying to bounce back after a disappointing jobs report sent them down to their lowest levels since November.
At 2.17%, the 10-year yield is still at its lowest point of 2017. Mortgage rates typically follow in the footsteps of the 10-year yield, so rates are basically flat today. There was a decent bit of economic data out this morning, but nothing major and nothing significant enough to cause any substantial moves in the market.
Click here to get today’s latest mortgage rates (Jun. 5, 2017).
That means that mortgage rates remain at some of the lowest levels they’ve been at all year. We’re on track for the 30-year fixed rate to stay under 4% in the Freddie Mac Primary Mortgage Market Survey (PMMS) for the third straight week. That’s an important threshold for borrowers, creating great opportunities for buyers in what is a very busy spring housing market.
Find out what your custom mortgage rate would be.
Key events this week
Looking ahead to the rest of the week, there are a few key moments that could affect mortgage rates and as it happens, they all take place on Thursday.
UK Elections
The main focus is of course the UK general elections. The snap election called by current Prime Minister Theresa May could have a serious impact on Brexit negotiations depending on who comes out on top.
May and her conservative party are hoping to gain further majority over the Labour party, which would allow them to have more control while orchestrating the UK’s departure from the EU. The latest polls are showing that the vote should work in the Conservative party’s favor, however, their lead has softened since polling began a few months ago.
ECB Meeting
The European Central Bank will hold a policy meeting on Thursday. It’s the first of its kind since the French election. Economists don’t expect ECB President Mario Draghi to make any adjustments to their current asset purchasing program, but it some have said that we could get some forward guidance that points toward a wind down in the latter half of the year. At any rate, financial market participants will be tuned in and ready to act on any surprises.
Comey Testimony
It’s back to the U.S. for the final key event this week: Ex-FBI Director James Comey’s testimony before the Senate intelligence committee. It will be the first testimony for Comey since being fired, and has the potential to be an explosive discussion depending on what Comey says.
If he comes out and says that he does state that he thinks President Trump tried to influence his Russia investigation, that could be a bombshell that would stir up the war cries for impeachment.
When the initial Comey memo got reported on about three weeks ago, it caused a rush out of stocks and into the safer play of government bonds. That situation could repeat itself if Comey says anything that further implicates Trump. Generally when a flight to safety like that occurs it pushes mortgage rates lower.
What does this mean for me?
It’s a good week to lock a rate
Mortgage rates are down near 2017 lows, and are at very low levels historically. That’s great news for anyone looking to purchase a new home or refinance their current mortgage. It’s always difficult to say where rates will be in the future, but it does seem like they should remain close to where they are right now until at least Thursday.
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:
Productivity and Costs
Nonfarm productivity came in unchanged in the first quarter of 2017. That’s not as bad as the 0.2% decline that economists had projected. Unit labor costs rose by 2.2%.
PMI Services Index
The PMI services index cam in at 53.6 for May. That’s higher than the prior reading but just a hair below the 54.0 that was expected. Overall it’s a solid report.
Factory Orders
Factory orders slipped by 0.2% in April, which is right in line with expectations. One positive, however, is that the prior reading was revised upward from 0.2% to 1.0%.
ISM Non-Mfg Index
The ISM non-mfg index came in one tenth below what analysts had projected at 56.9. That’s a strong reading and not much of a slide down from the prior reading of 57.5.
Labor Market Conditions Index
The labor market conditions index
Notable events this week:
Monday:
- Productivity and Costs
- PMI Services Index
- Factory Orders
- ISM Non-Mfg Index
- Labor Market Conditions Index
Tuesday:
- JOLTS
Wednesday:
- EIA Petroleum Status
Thursday:
- Jobless Claims
- ECB Decision
- Comey Testimony
Friday:
- Nothing
from Total Mortgage Underwritings Blog http://ift.tt/2qTHgZa
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