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 6.26.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Mortgage rates rise – still near year lows
Financial market participants got a bit of a surprise today when European Central Bank President Mario Draghi came out and stated that tapering off of the current stimulus program might happen sooner than the market thinks.
Click here to get today’s latest mortgage rates (Jun. 27, 2017).
Optimistic investors immediately began to sell-off government bonds, pushing the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) up nearly four basis points on the day to 2.17%.
That’s a rebound after yesterday’s slide down to year lows off of the disappointing durable goods report. Mortgage rates tend to follow in the same direction as the 10-year yield, so we’re seeing rates up a little bit today.
As stated, though, they’re climbing off of some of the lowest levels of the year, so they have a ways to go before they get anywhere close to what would be deemed high for 2017, let alone historically.
What happens during the rest of the trading day depends now largely depends on what the word is from the Federal Reserve. A surprisingly optimistic Draghi now puts more pressure on Fed Chair Janet Yellen to stick to her guns and continue with the current rate hike path.
Get your free mortgage rate quote in five minutes.
She’s dealing with a very skeptical market, but maybe Draghi has softened them up and made them vulnerable to a firm stance from Yellen. No one really knows at this point. All we can do is wait and see what she says and how the market reacts.
If, however, investors do start to believe that the rate hikes will continue to come at a fairly swift pace, that would certainly further the sell-off of government bonds and push mortgage rates higher.
Right now, financial market participants are still up in the air about another rate hike in 2017, with the CME Group’s Fed Fund futures showing about a 50% chance for a quarter point increase in December.
What does this mean for me?
Volatility shows importance of locking while rates are low
Today’s surprise statement and subsequent spike in rates shows that you never can be sure what will happen with the market. Someone says something and on a turn of a dime things change.
Fortunately, mortgage rates are still very close to 2017 lows. Many borrowers will find that they can still get an accommodating rate on a purchase or refinance.
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
- San Francisco Fed President John C. Williams at 4:05am
- Philadelphia Fed President Patrick Harker at 11:15am
- Fed Chair Janet Yellen at 1:00pm
- Minneapolis Fed President Neel Kashkari at 5:30pm
S&P Case-Shiller HPI
For April:
- The 20-city seasonally adjusted index rose 0.3%.
- The 20-city non-seasonally adjusted index rose 0.9%.
- The 20-city non-seasonally adjusted index is now at 5.7%.
These numbers are slightly below the consensus.
Consumer Confidence
Consumer confidence remains strong with a 118.9 for June. That’s 2.2 points above what was expected.
Notable events this week:
Monday:
- Fedpseak
- Durable Goods Orders
Tuesday:
- Fedspeak
- S&P Case-Shiller HPI
- Consumer Confidence
Wednesday:
- Fedspeak
- International Trade in Goods
- Pending Home Sales Index
- EIA Petroleum Status Report
Thursday:
- GDP
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
- Chicago PMI Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2tgNMKf
No comments:
Post a Comment