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 to see what’s happening this week.
Market Outlook 6.12.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Markets in holding pattern ahead of Fed decision
Today marks the beginning of the Federal Reserve’s Federal Open Market Committee. It’s a two-day monetary policy discussion that will wrap up tomorrow with a written statement at 2:00pm and a press conference with Fed Chair Janet Yellen at 2:30pm.
At this point, it doesn’t seem as though there are any financial market participants that believe the Fed won’t follow through with a quarter point increase to the federal funds rate, bringing it to 1.00%-1.25%. That would be the fourth time the Fed has raised rates since the financial crisis and the third time in seven months.
Click here to get today’s latest mortgage rates (Jun. 13, 2017).
Right now the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is flat on the day at 2.21%. It’s normal for the market to remain in somewhat of a holding pattern ahead of a Fed meeting. Even though traders are extremely confident that the Fed will raise rates, they still don’t know what will happen with the Fed further on down the road.
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The question that everyone is asking is: will this be a dovish hike or a hawkish hike? In other words, will the Fed hike but remain cautious and signal that the next rate increase might not be for several months, or will they hike and talk about reassure everyone that do not see a reason to slowdown their current path.
The more hawkish the Fed is, the more mortgage rates are likely to rise. If the Fed strikes a dovish approach, we might see rates fall.
What does this mean for me?
Mortgage rates are still near year lows
Mortgage rates remain at accommodating levels for anyone looking to refinance or purchase.
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:
FOMC Meeting Begins
The Fed’s two day meeting starts today and ends tomorrow afternoon.
PPI-FD
Producer prices didn’t change in May, putting the year over year reading at 2.4%. PPI-FD less food and energy rose 0.3% month over month, bringingi it to 2.1% year over year. PPI-FD less food and energy and trade services fell 0.1% month over month, but remained unchanged year over year at 2.1%.
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/2rnbCDR
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