It’s a fairly slow day with not much economic data out. Mortgage rates are up slightly but remain very close to 2017 lows. This is great news for anyone who is on the market for a new home or a refinance. Looking ahead to the rest of the week we start to get more and more economic data leading up to the Jackson Hole Symposium. It’s very possible that rates will adjust over the next few days, so keep an eye on the markets.
Market Outlook 8.21.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates up a little today – still near 2017 lows
Mortgage rates are a little higher this morning. The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) is up a little over two basis points right now, bringing it to 2.21%. Yesterday, it dipped down to 2.18%–it’s lowest position in two months. Mortgage rates generally move in the same direction as the 10-year yield, so rates are up a touch on the day.
Click here to get today’s latest mortgage rates (Aug. 22, 2017).
The Jackson Hole Symposium will kick off on Thursday, and will be the big event for investors this week. Fed Chair Janet Yellen will be there and is slated to speak on Friday. At this point, no one is expecting her to take the opportunity to signal any major changes in monetary policy.
European Central Bank President Mario Draghi is also scheduled to talk on Friday, but similarly, it’s unlikely that he will use the stage to make any sudden changes. Still, the event is going to be closely watched by financial market participants across the globe so there is always the potential for something to spark a rally or slide.
The key for mortgage rates is the overall consensus on the economy. If the talks coming out of Jackson Hole are optimistic and point toward a strong economy, that could put upward pressure on rates. On the other hand, if speakers come off as cautious and somewhat concerned, that would likely put downward pressure on rates.
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What does this mean for me?
Rates still near year lows
Mortgage rates are still at some of the lowest levels they’ve been at all year. If you are currently thinking about going through with a purchase or refinance, it definitely makes sense to dig a little deeper into the numbers to see if it makes financial sense.
With rates as low as they are right now, the opportunity is there for some borrowers to lock in a great rate for 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:
FHFA House Price Index
The FHFA house price index came in for June with a 0.1% rise. That’s below the consensus for 0.5%, and brings the year over year rate to 6.5%.
Richmond Fed Mfg Index
The Richmond Fed mfg index came in at a 14 for August. That’s above the consensus for an 11, and is even outside the high estimate for a 12.
Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- FHFA House Price Index
- Richmond Fed Mfg Index
Wednesday:
- New Home Sales
- EIA Petroleum Status
- Fedspeak
Thursday:
- Jackson Hole Symposium
- Jobless Claims
- PMI Composite Flash
- Existing Home Sales
Friday:
- Jackson Hole Symposium
- Durable Goods
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2xoUT1w
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