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 6.19.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Mortgage rates move lower
Yesterday I wrote that with very little economic data our this week, there was the possibility that investors would move off of something said during one of the many speaking engagements from Fed officials. Well it didn’t take long for that to happen.
After inching up all day on Monday, a couple remarks from Fed officials have walked back yields closer to where they started the week. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down a little over two basis points (one basis point = 0.01) to 2.17%. That’s very close to its lowest position of the year at 2.12%.
Click here to get today’s latest mortgage rates (Jun. 20, 2017).
So what was the word out of the Fed that played into today’s decline?
The first comment was from Chicago Fed President Charles Evans who said that the “current environment supports very gradual hikes” during a speech to the Money Marketeers of New York University. He went on to say that the Fed had a “serious policy outcome miss” by not hitting its target of 2% inflation.
As for what exactly “very gradual” means for rate hikes this year, Evans left the possibilities open, stating “It remains to be seen whether there will be two rate hikes this year, or three, or four.”
The next comments came from Boston Fed President Eric Rosengren. He’s a non-voting member of the FOMC this year, but he still participates in the discussions and therefore his outlook carries weight with investors.
In prepared remarks in Amsterdam, Rosengren made the claim that low interest rates might be here for longer than most market participants currently believe. He then went on to express his concern that this could make it difficult for the Fed to deal with any negative shocks in the near-future.
On the more hawkish side of things, was William Dudley, who spoke early on Monday and said that he was confident inflation would pick up, which would allow the Fed to raise rates sooner.
This kind of mixed bag from Fed officials is par for the course, and it tends to keep mortgage rates fairly flat. That’s what we’re seeing so far this week, and it’s possible it’s what we’ll be looking at as we head into the weekend.
What does this mean for me?
You might be able to get a great deal
With mortgage rates continuing to stay down near 2017 lows, many borrowers will find that they can get a great deal on a purchase or refinance. Rates are still expected to rise in the long-term, so it’s likely that borrowers will be better off acting sooner rather than later.
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. Or, 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:
Fedspeak
- Fed Vice Chairman Stanley Fischer at 3:15am
- Boston Fed President Eric Rosengren at 8:15am
- Dallas Fed President Robert Kaplan at 3:00pm
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Fedspeak
Wednesday:
- Existing Home Sales
- EIA Petroleum Status
Thursday:
- Jobless Claims
Friday:
- Fedspeak
- PMI Composite Flash
- New Home Sales
from Total Mortgage Underwritings Blog http://ift.tt/2rMO3o7
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