Comments from President Trump about a possible government shutdown if the border wall doesn’t get funded are pushing mortgage rates lower today. The uncertainty is something that investors can’t fully overcome, and has created a somewhat risk-off environment. That means that rates are even closer to 2017 lows. Read on to get the details.
Where are mortgage rates going?
Rates lower off Trump comments
Last night, President Trump gave a speech at a rally in Phoenix, Arizona, during which he threatened to shut down the government if funding for a border wall was not appropriated. The comments have created a risk-off environment in the markets this morning, pushing stocks and Treasury yields lower.
Click here to get today’s latest mortgage rates (Aug. 23, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down almost three basis points from the start of the trading session today. That brings it to 2.18%–almost a two month low. Mortgage rates typically move in the same direction as the 10-year yield, so rates are trending a little lower this morning.
It’s another surprising political statement that is having an effect on the markets. That’s kind of been par for the course over the last few months now, making it harder and harder to predict where rates will go on any given day. We can still make assumptions based off the economic calendar, but there’s no road-map for off the cuff remarks from political leaders.
Fortunately for borrowers, the remarks this year have mostly created uncertainty and kept rates at very accommodating levels. That’s because the more uncertainty there is, the less comfortable investors are with taking on risky assets like stocks.
Instead, they choose to put their money in the relative safety of government bonds. Mortgage backed securities compete for similar types of investors as these government bonds, and as such, adjust their yields accordingly.
The Jackson Hole Symposium kicks off tomorrow so keep an eye on news out from there to affect the markets.
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What does this mean for me?
Rates near 2017 lows – great time to lock
Mortgage rates are down today, putting them ever-closer to 2017 lows. That is great news for anyone who is looking to lock in a rate, be it on a purchase or refinance. It’s hard to imagine that rates will go much lower than this anytime soon, so our recommendation is to lock now if you can.
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:
PMI Composite Flash
The PMI composite flash for August came in at 56.0. Manufacturing came in at 52.5 and services at 56.9. It’s a mixed report with manufacturing coming in below expectations and the other two readings above.
New Home Sales
New home sales for July came in at an annualized rate of 571,000, which is below the 610,000 that was expected.
EIA Petroleum Status
For the week of 8/18/17:
- Crude oil: -3.3 m barrels
- Gasoline: -1.2 M barrels
- Distillates: 0.0 M barrels
Fedspeak
- Dallas Fed President Robert Kaplan at 1:00pm
Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- FHFA House Price Index
- Richmond Fed Mfg Index
Wednesday:
- New Home Sales
- PMI Composite Flash
- EIA Petroleum Status
- Fedspeak
Thursday:
- Jackson Hole Symposium
- Jobless Claims
- Existing Home Sales
Friday:
- Jackson Hole Symposium
- Durable Goods
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2xsJOwa
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