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?
All eyes on the Fed
It’s a slow day today. The big event for investors this week is the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday. All the action will take place on Wednesday when the written statement is released (2:00pm) and the press conference with Fed Chair Janet Yellen happens (2:30pm).
Click here to get today’s latest mortgage rates (Jun. 12, 2017).
The market is overwhelmingly anticipating a quarter point increase to the federal funds rate (bringing it to 1.00%-1.25%), with the CME Group’s Fed Funds futures giving it a 96% chance of happening. Clearly, you would be hard-pressed to find a financial market participant who believes that they will not hike.
With the FOMC decision already priced into the market, investors are looking for forward guidance on future decisions. Faltering economic data has put a damper on what was at one point supposed to be a 3-4 rate hike year. Now, investors are acting under the assumption that the Fed will only raise rates one more time in December.
The written statement is always meticulously analyzed by everyone and their mother, so feel free to get out your fine toothed comb and join the party. For anyone who doesn’t enjoy the tedious line by line comparison from the previous statement, there is always the Wall Street Journal’s Fed Statement Tracker.
Got five minutes? Get a free rate quote.
It’s entirely possible that we’ll get some sort of juicy nugget in the written statement, but if for some reason we don’t, we’ll get another chance during the post-meeting press conference with Fed Chair Janet Yellen.
What is said in the written statement will help shape the questions for the press conference, but it’s fairly safe to say that Yellen will be fielding questions on future rate hikes, the Fed’s balance sheet, and the state of the economy.
It’s important to note that a 25 basis point increase in the federal funds rate does not mean that mortgage rates will bump up by 25 basis points. The mortgage market has already priced in the rise, and would be more likely to rise further if the Fed comes out and issues a hawkish statement talking about multiple rate hikes by the end of the year.
The takeaway here is that Wednesday is the big day this week, and we could see mortgage rates rise or fall depending on what the Fed says.
What does this mean for me?
Find out if you can save money
Mortgage rates hit 2017 lows last week. They rose a little toward the end of the week and are basically flat right now. All things considered, they are at very low levels on the year. Borrowers getting in on the action right now have picked a great time to do so.
There is definitely the opportunity for some homeowners to save on their monthly payments with a refinance, and for new buyers to lock in an accommodating rate for years to come.
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:
- Nothing
Notable events this week:
Monday:
- Nothing
Tuesday:
- FOMC Meeting Begins
- PPI-FD
Wednesday:
- Consumer Price Index
- Retail Sales
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- Jobless Claims
- Philly Fed Business Outlook
- Empire State Mfg
- Import and Export Prices
- Housing Market Index
- Industrial Production
Friday:
- Housing Starts
- Consumer Sentiment
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2skKV2T
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