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?
Rates continue to hover near lowest levels of 2017
The Fed’s slightly dovish statement this week kept mortgage rates from jumping higher this week. Inflation continues to run below their target of 2%, and is holding back investors from believing in a rate hike anytime before December. Even then, that meeting only has about a 50% chance of a quarter point increase to the federal funds rate.
Click here to get today’s latest mortgage rates (Jul. 28, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) moved higher ahead of the Fed’s decision, but after their slightly dovish statement was released on Wednesday afternoon, the yield retreated. Today it’s at 2.314%. Mortgage rates typically move in the same direction as the 10-year yield, so rates are holding fairly steady as we head into the weekend.
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Mortgage rates drop in Freddie Mac PMMS
Yesterday, we got the Freddie Mac Primary Mortgage Market Survey, which showed that rates fell for the second straight week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell four basis points to 3.92% (0.5 point)
- The average rate on a 15-year fixed rate mortgage sunk three basis points to 3.23% (0.5 point)
- The average rate on a 5-year adjustable rate mortgage dipped three basis points to 3.18% (0.5 point)
That means that the 30-year is now just four basis points above the year low for 2017.
Here is what Chief Economist at Freddie Mac, Sean Becketti, had to say about mortgage rates this week:
“The 10-year Treasury yield rose 5 basis points this week while the 30-year mortgage rate dropped 4 basis points to 3.92 percent. Mortgage rates in next week’s survey would depend on how the market reacts to the Fed’s balance sheet unwinding announcement.”
Looking ahead
There is a lot going on next week. We get several economic releases nearly every day (some more important than others), culminating with the Employment Situation (a.k.a. the monthly jobs report) on Friday. The jobs report will of course take center stage, but we could see some market movement ahead of that release.
What does this mean for me?
Great time to lock a rate
With mortgage rates continuing to hover around some of the lowest levels of 2017, right now is a great time for borrowers to lock in a rate. It doesn’t matter if you’re refinancing your current mortgage or planning to purchase a new home–the opportunity to get an accommodating rate is there.
Mortgage rates are incredibly fickle, though, so our recommendation is to act now while you have the sure thing. The long-term trend is still for rates to rise, so borrowers that act sooner rather than later are likely to get the better deal.
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:
GDP
- US growth up to 2.6% at the end of Q2
Consumer Sentiment
- 93.4
Fedspeak
- Minneapolis Fed President Neel Kashkari at 1:20pm
Notable events this week:
Monday:
- PMI Composite Flash
- Existing Home Sales
Tuesday:
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
Wednesday:
- New Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- Durable Goods Orders
- International Trade in Goods
- Jobless Claims
Friday:
- GDP
- Consumer Sentiment
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2v4fj2g
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