Mortgage rates are finishing off the week with a slight increase. The good news is that rates are still at extremely accommodating levels. If you’re on the market for a purchase or refinance, you’ve picked a great time to take action. Read on for more details.
Where are mortgage rates going?
Rates finish the week higher but still at very low levels
It seems as though mortgage rates are going to remain trending higher as we head into the weekend. The week was fairly mild for fluctuations until Wednesday when all of the commotion about President Trump and his tax cuts sparked a sell-off in the bond market (optimistic investors believe that economic growth will result from the tax cuts and therefore are willing to take on more risk in stocks) which sent yields racing higher.
Click here to get today’s latest mortgage rates (Sep. 29, 2017).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) jumped up about nine basis points by the time it was all said and done.
There was a slight dip yesterday but only by a couple basis points, which means rates are still dealing with the upward pressure from Wednesday.
The pressure is due to the fact that mortgage backed securities compete for similar investors as the 10-year Treasury note, so when the 10-year yield rise, mortgage rates most likely will as well. It’s not a perfect relationship but that’s normally how it goes.
[contentbox id=”8″]
What does this mean for me?
Rates at very low levels historically – great time to lock
Mortgage rates are still at some of the lowest levels they’ve been at all year. That means that there are definitely opportunities for some borrowers to get a great deal on a purchase or refinance. It only takes a few minutes with our Mortgage Builder to figure out what the best path for you to take is.
Today’s economic data:
Personal Income and Outlays
The personal income and outlays data for August came in softer than expected at a monthly change of 0.2%. Consumer spending came in at 0.1%. The Fed’s favorite inflation measure–core PCE–was one tenth under projections at 0.1%. That puts it at just 1.3%, year over year.
Chicago PMI
The Chicago PMI came in at a strong 65.2. That’s decently higher than the 58.5 that was expected.
Consumer Sentiment
Consume sentiment is at 95.1 for its final position in September.
Notable events this week:
Monday:
- Fedspeak
- Dallas Fed Mfg Survey
Tuesday:
- S&P Case-Shiller HPI
- Fedspeak
- New Home Sales
- Consumer Confidence
- Richmond Fed Mfg Index
Wednesday:
- Durable Goods Orders
- Pending Home Sales
- EIA Petroleum Status Report
Thursday:
- GDP
- International Trade in Goods
- Jobless Claims
- Fedspeak
Friday:
- Personal Income and Outlays
- Chicago PMI
- Consumer Sentiment
from Total Mortgage Underwritings Blog http://ift.tt/2yd165g
No comments:
Post a Comment