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?
30-year fixed hits new 2017 low in Freddie Mac PMMS
The Freddie Mac Primary Mortgage Market Survey (PMMS) got released this morning and it’s showing that the 30-year fixed rate came in at a new year low. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell one basis point to 3.94% (0.5 points)
- The average rate on a 15-year fixed rate mortgage was unchanged at 3.19% (0.5 points)
- The average rate on an adjustable rate mortgage moved up four basis points to 3.11% (0.5 points)
This is the first time in 2017 that the 30-year has stayed under 4% in the PMMS for two consecutive weeks. Of course, it should be noted that economic reports such as this are always lagging indicators and therefore don’t always reflect current market conditions.
Click here to get today’s latest mortgage rates (Jun. 1, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are heading) is up a few basis points right now after a much better than expected ADP employment report is giving hope for a strong monthly jobs reading tomorrow. In general, positive economic data puts upward pressure on mortgage rates, while poor economic data sends them lower.
Find out what your custom mortgage rate would be.
The CME Group’s Fed Funds Futures have the current probability of a quarter point increase in the federal funds rate at 95.8%. It really doesn’t get much higher than that.
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What does this mean for me?
Good time to lock in a rate
Mortgage rates might be just the slightest touch higher this morning, but they’re moving off of 2017 lows so they’re still at very accommodating levels for borrowers.
The current rise due to strong labor data was warned about in this blog early on in the week, but there’s still time to get in ahead of the monthly jobs report tomorrow. If it comes in anywhere close to the ADP numbers, we can expect rates to move up by at least a few basis points, possible several.
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:
ADP Employment Report
The ADP employment report this morning is showing 253,000 private sector jobs added in May. That’s miles above the 170,000 that analysts had estimated. It’s a very strong number, but it doesn’t necessarily mean that we’ll get such a high number in tomorrow’s Employment Situation.
The two reports don’t always match up, so it’s best not to count the chickens before they hatch. However, for speculation’s sake, if we were to get anywhere close to that number in tomorrow’s report, it would undoubtedly mean a June rate hike is a lock for the Fed.
Jobless Claims
Applications for U.S. unemployment benefits crept up by 13,000 to 248,000 for the week of 5/27/17. That puts the 4-week moving average at 238,000.
PMI Manufacturing Index
The PMI manufacturing index came in at 52.7. That’s just a hair below the expectations for 53.0.
ISM Mfg Index
The ISM Mfg index posted a 54.9 for May, which is three tenths of a point higher than what was predicted.
Construction Spending
Construction spending fell by 1.4% for April. That puts the year over year growth at 6.7%.
EIA Petroleum Status
- Report will be released at 11:00am.
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
Contact us today to see if we can save you money on your home payments.
from Total Mortgage Underwritings Blog http://ift.tt/2ss3uhf
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