Uncertainty has been the theme of the week. It started with the Fed minutes on Wednesday and continued Thursday with political concerns with the Trump administration. Without a clear path ahead, investors moved more into government bonds pushing Treasury yields and mortgage rates lower. This is good news for anyone who has been thinking about a purchase or refinance.
Where are mortgage rates going?
Rates move lower on economic uncertainty
It’s been a somewhat hectic past couple of weeks with many surprises that have put the markets on a cloudy path. On Wednesday, the Fed’s FOMC minutes came out and revealed that there is a definite division at the Fed between those who want to stay the course and continue to raise the federal funds rate in 2017 and those who would wish to wait it out until there is more clarity on inflation.
Click here to get today’s latest mortgage rates (Aug. 18, 2017).
With the internal split now out in the open, investor skepticism about another rate hike in 2017 is about as high as it has been in the past couple of months. Such doubt caused many investors to move out of stocks and into bonds, pushing Treasury yields lower on Wednesday afternoon.
Then yesterday, reports that Gary Cohn, due to mounting pressure from his financial market peers, would resign as chief economic advisor to President Trump sent even more investors into the perceived safety of government bonds.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is currently down to 2.18%. That’s about ten basis points below where it was at its peak on Wednesday morning and about two basis points below where it started the week.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are slightly down on the week. It doesn’t seem as though it will happen at the moment, but if Cohn were to resign, that would definitely send the markets reeling and we could see a big drop in Treasury yields and mortgage rates.
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What does this mean for me?
Take advantage and lock in a rate today
Mortgages rates were already at the lower end of the spectrum for 2017 and now they’ve improved a little bit. That makes right now the perfect time for borrowers to lock in a 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:
Consumer Sentiment
- 10:00am
Notable events this week:
Monday:
- Nothing
Tuesday:
- Retail Sales
- Empire State Mfg Survey
- Import and Export Prices
- Business Inventories
- Housing Market Index
Wednesday:
- Housing Starts
- EIA Petroleum Status
- FOMC Minutes
Thursday:
- Jobless Claims
- Philly Fed Business Outlook
- Industrial Production
Friday:
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2idz8z0
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