The geopolitical conflict with North Korea is creating a stir in the markets this morning. Right now, investors are moving more into the safe haven of government bonds, which in turn is putting downward pressure on mortgage rates. Read on to get all the details.
Market Outlook 8.7.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Geopolitical jitters send rates lower
With no major economic reports out today, the emphasis right now is almost entirely on geopolitical events.
President Trump stated yesterday that “North Korea best not make any more threats to the United States”, going on to warn that they would be “met with fire and fury like the world has never seen.”
Click here to get today’s latest mortgage rates (Aug. 9, 2017).
The statement was made in response to news that North Korea has been tinkering with the notion of a ballistic strike on U.S. territory Guam. Despite the fact that we’ve gotten similar statements from both sides before, financial market participants can’t help but be a little spooked by the events. Investors quickly rushed into the safe haven of gold and government bonds.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down about four basis points this morning. That puts it at its lowest point since last Thursday. Mortgage rates typically move in the same direction of the 10-year yield, so rates are trending lower this morning.
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Checking in with the CME Group’s Fed Funds futures, we can see that the odds have tipped slightly in the favor of rates remaining unchanged in December. It’s been a bit of a see-saw over the last couple months, but recently it’s been looking more and more likely that the Fed will have to kick the rate hike can down the road.
What does this mean for me?
Perfect time to lock in a rate
With mortgage rates continuing to hang around some of the lowest levels of 2017, right now is the perfect time to lock in a rate on a purchase or refinance. The long-term projection is for rates to rise so borrowers who act sooner rather than later are likely to get the better deal.
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:
Productivity and Costs
Nonfarm productivity came in at an annualized rate of 0.9% for the second quarter of 2017. Unit labor costs rose by 0.6%.
EIA Petroleum Status Report
- 10:30am
Fedspeak
- Chicago Fed President Charles Evans at 1:00pm
Notable events this week:
Monday:
- Fedspeak
Tuesday:
- JOLTS
Wednesday:
- Productivity and Costs
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- PPI-FD
- Fedspeak
Friday:
- Consumer Price Index
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2upfINf
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