Mortgage rates aren’t moving much this morning but it’s busy week ahead with several chances for some market action. The key events are President Trump at the United Nations and the Federal Reserve’s FOMC meeting on Tuesday and Wednesday. Depending on what is said at those events we could see rates move one way or the other. Read on for more details.
Where are mortgage rates going?
Busy week – rates still near year lows
It’s a fairly slow Monday for the markets, but there is definitely the potential for things to quickly pick up as the week progresses. The first chance will come tomorrow when President Trump will give a speech to world leaders as part of the United Nations General Assembly.
The event, which is being held in New York City, is being touted as a key moment in Trump’s presidency. Unsurprisingly, there is no shortage of opinions on how Trump should conduct himself and what the content of his speech should cover.
Click here to get today’s latest mortgage rates (Sep. 18, 2017).
For investors, the ideal situation is one where there aren’t any curve-balls from Trump that would send the markets unexpectedly reeling. In general, you could say that the more diplomatic President Trump is, the more likely it is that the bond market won’t see a rally and mortgage rates will remain fairly stable.
After Trump and the U.N., the next big event of the week will be the FOMC meeting announcement and subsequent press conference with Fed Chair Janet Yellen on Wednesday. While no one expects the Fed to make any adjustments to their monetary policy at this time, the event does offer an opportunity for a glimpse into what could happen in the coming months.
In particular, it will be interesting to see what, if anything, is mentioned about the December meeting. That meeting has long been the only real chance for the Fed to raise the federal funds rate again in 2017.
It’s definitely been looking like a long-shot for the past several weeks, but with the CME Group’s fed funds futures giving it about a 43% chance of happening, it can’t be completely written off.
The best market indicator of where mortgage rates are going this week (and every week) will be the yield on the 10-year Treasury note. Typically, mortgage rates move in the same direction as the 10-year yield, so a rising yield will mean rising rates.
With so much happening this week, it seems that mortgage rates are bound to adjust a few times. How far they move is yet to be seen, but it’s definitely important to pay attention to make sure you know what’s happening.
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What does this mean for me?
Still a great time to lock in a rate
We could see mortgage rates move around a little this week but the good news is that they’re starting off at levels close to 2017 lows. That means that right now is a great time to lock in a rate on a purchase or refinance.
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:
Housing Market Index
The housing market index fell three points to a 64 in September. That’s slightly below the 66 that analysts had projected.
Notable events this week:
Monday:
- Housing Market Index
Tuesday:
- FOMC Meeting Begins
- Housing Starts
- Import and Export Prices
- President Trump Speaks to the United Nations
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
- Philly Fed Business Outlook Survey
- FHFA House Price Index
Friday:
- Fedspeak
- PMI Composite Flash
from Total Mortgage Underwritings Blog http://ift.tt/2jDGtZb
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