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:
Market Outlook 6.5.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Uncertainty in UK elections pushes rates lower
The most recent polls are showing that British Prime Minister Theresa May and her Conservative Party have lost much of their lead over the Labour Party, taking 43.3% of the vote compared to 36.8%.
Click here to get today’s latest mortgage rates (Jun. 6, 2017).
That’s a much closer race than the 18 point gap that was seen in the earliest polls. When Theresa May called for the snap-election she did so with the intent to take advantage of a weak opposition and gain more seats in the House of Commons, which would further strengthen her hand during Brexit negotiations. While support is slipping in the polls, the conservatives are still the likely victors when it’s all said and done on Thursday.
However, the increased uncertainty from the recent polls is enough to push skittish investors out of stocks and into the safer play of government bonds. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down over four basis points to 2.14%. That’s the lowest it’s been at since last November.
Find out what your custom mortgage rate would be.
Mortgage rates usually trail behind the 10-year yield, so rates are moving lower today. With very little economic data out today and tomorrow it’s looking like we’re going to get four consecutive weeks of rates trending lower in the Freddie Mac Primary Mortgage Market Survey (PMMS). That would mean the third consecutive week with the average rate on the 30-year fixed rate mortgage under 4%.
If investor appetite for risk doesn’t pick up later today and tomorrow (there’s no reason it should) then we will also very likely see new 2017 lows for mortgage rates in the PMMS on Thursday morning. Of course, there is so much market moving potential for Thursday with the UK elections, the ECB meeting, and the Comey testimony.
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We could really see financial market participants getting pulled in several different directions, making it very difficult to firmly call for one outcome. The Comey testimony should be the most closely watched event in the US. If the ex-FBI director drops any more bombshells about President Trump trying to influence the direction of the FBI’s Russia Investigation, that would really shake things up in the White House.
The likely market scenario then would be an exodus out of stocks and into government bonds, pushing treasury yields and mortgage rates lower. Many analysts believe we’ve already gotten as much as there is from Comey with the release of his post-Trump meeting memo, but it’s sort of a “you never know” situation. Until it happens, investors will be on the edge of their seats.
What does this mean for me?
Get in on the action
Mortgage rates are at some of the best levels they’ve been at all year. It doesn’t matter if you’re looking to purchase a new home or refinance your current mortgage; the opportunity is there for many borrowers to lock in a low rate and get a great deal on a monthly payment. If you don’t want to deal with the risk of rising rates on Thursday, you should lock before then.
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:
JOLTS
Job openings came in at 6.044 M for April. That’s higher than the consensus for 5.725 M and the prior reading of 5.743 M.
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/2szPz9J
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