Easing tension between North Korea and the Unites States is allowing financial market participants to move more into risky assets. That, combined with positive economic data, is putting some upward pressure on mortgage rates this morning. The good news is that rates are still at very accommodating levels. Read on for more details.
Market Outlook 8.14.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates up after retail sales & easing geopolitical tension
We got a decent amount of economic data out this morning and just about all of it was positive. The spotlight was on retail sales and it didn’t fail to deliver, coming in above expectations for July and even revising June’s readings into positive territory.
Click here to get today’s latest mortgage rates (Aug. 15, 2017).
This report, along with the others today, are contributing to a slight rise in Treasury yields. The market also experienced some relief after North Korea’s Kim Jong Un backpedaled on his threat of a missile attack on Guam.
After last week’s tense exchanges, the easing hostility is allowing investors to move more out of government bonds and into stocks. This is putting upward pressure on Treasury yields.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is about a little over four basis points this morning. Mortgage rates typically move in the same direction as the 10-year yield so we’re seeing rates up slightly right now.
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What does this mean for me?
Rates still near 2017 lows
Mortgage rates are still at very low levels both on the year and historically. There are certainly plenty of opportunities for some borrowers to get a great deal on a purchase or refinance and save money in the years to come.
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:
Retail Sales
After a disappointing June, retail sales far exceeded expectations for July. Month over month, they ticked up 0.6%. Retail sales less autos rose 0.5%, month over month, as did retail sales less autos and gas. The control group rose 0.5%. Not only did these readings beat what analysts had projected, but the readings for June all got revised into the positive.
Empire State Mfg Survey
The Empire State index came in at a very strong 25.2 for August. That’s way above expectations for a 9.8.
Import and Export Prices
Import prices increased by 0.1% for July, putting them at 1.5% year over year. Export prices rose 0.4%, bring them up to 0.8% year over year.
Business Inventories
Business inventories rose 0.5% for June. That’s one tenth above what analysts had projected.
Housing Market Index
The housing market index came in at a 68 for August. That’s three points above the consensus.
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/2uYT7m8
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