Current Mortgage Rates for Thursday, July 27, 2017

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?

Mortgage rates not moving much today  – Down again in Freddie Mac PMMS

The Fed’s decision yesterday to keep the federal funds rate unchanged at 1.00%-1.25% was no surprise. The written statement; however, was a little on the dovish side causing Treasury yields to slide a few basis points.

The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) moved from 2.32% to 2.28%. Today, it has moved up a couple basis points to 2.30%. Mortgage rates tend to move in the same direction as the 10-year yield, so rates are flat to slightly higher right now.

Click here to get today’s latest mortgage rates (Jul. 27, 2017).   

Checking back in with the Fed’s statement, there really weren’t too many adjustments, but the few minor changes were notable. The most noticeable change was to the inflation outlook, which got a downgrade from “running somewhat below 2 percent” to “declined and are running below 2 percent.”

It’s not quite enough to cause a major spook (investors are well aware of the concern over inflation), but it was enough to reel back the optimism that was being projected prior to the statement’s release.

The other notable change was with regards to the balance sheet, which they said will begin to be normalized “relatively soon.” That continues to put it on track for a 2017 start.

December still continues to be the best candidate for a rate hike in 2017, with about a 51% chance of a quarter point increase, according to the CME Group’s Fed Fund futures.

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Mortgage rates fall in Freddie Mac PMMS

Mortgage rates fell for the second straight week in the Freddie Mac Primary Mortgage Market Survey. 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 fell three basis points to 3.23% (0.5 point)
• The average rate on a 5-year adjustable rate mortgage fell three basis points to 3.18% (0.5 point)

That puts the 30-year just three 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.”

What does this mean for me?

Great time to lock a rate

Mortgage rates are at some of the lowest levels they’ve been at all year. That’s great news for anyone who is currently planning to refinance their current mortgage or purchase a home.

If you’ve been on the fence about taking action, you should seriously consider taking action now while rates are down.

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:

Durable Goods Orders

Durable goods rose 6.5% for June. That brings them up to 16.1% year over year. The consensus was for 3.5%, but new orders got a huge boost from aircraft orders, which were up a staggering 131%.

The boost is easily noticed when transportation is factored out, leaving a mere 0.2% rise. Core capital goods fell 0.1% month over month, and are now at 5.6% year over year.

International Trade in Goods

The U.S. trade deficit narrowed to $63.9 B in June. That’s better than the $65.0 B that was expected.

Jobless Claims

Jobless claims rose 10,000 for the week of 7/22/17 up to 244,000.

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

Rates are still near 2017 lows. Contact us today to see if we can save you money on your home payments.    

from Total Mortgage Underwritings Blog http://ift.tt/2v2of7T