It’s good news today for anyone looking to purchase a home or refinance their current mortgage as mortgage rates are moving lower. Geopolitical events across the pond are partly to blame, so there’s no telling how long rates will stay down. That means that borrowers should consider taking action to get in on the dip. Read on for more details.
Where are mortgage rates going?
Rates fall
The Freddie Mac Primary Mortgage Market Survey (PMMS) came out this morning and showed that rates fell from last week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell three basis points to 3.88% (0.5 point)
- The average rate on a 15-year fixed rate mortgage fell two basis points to 3.19% (0.5 point)
- The average rate on a 5-year adjustable rate mortgage ticked up one basis point to 3.17% (0.4 point)
This week’s survey snapped two straight week of increases for rates. It’s important to note that the data for the survey is collected early on in the week and therefore doesn’t necessarily reflect current market conditions.
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In this case, that means that average mortgage rates are even a little lower than what the survey shows, as rates have improved today. That’s in part to the resurfaced tensions in Spain with Prime Minister Mariano Rajoy making his firmest move yet with an ultimatum stating that if the Catalan government doesn’t dissolve their current plans, the region’s autonomy will be revoked.
The current Fed chair, Janet Yellen, will see her term expire in February and it’s up to President Trump to nominate another candidate. It’s clearly a huge decision that will have a marked impact on the economy.
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Trump has been meeting with potential candidates recently and investors have started to react this week. Notably, there were some jitters on Tuesday as the news broke that he was seriously considering Stanford Economics Professor (and monetary policy hawk) John Taylor.
Those fears were somewhat tempered on Wednesday but it’s clear that the situation now has the full attention of the markets. Today, Trump meets with Yellen in the White House in what is no doubt her interview for the job.
Mortgage rates are still expected to rise in the long-term, no matter who gets tapped as the next Fed chair, but we could see some turbulence over the next few weeks as the decision is made.
What does this mean for me?
Great time to lock in a rate
With mortgage rates moving lower this week right now is a great time to lock in a rate on a purchase or refinance. We do think that rates will trend higher in the long-term so we’re recommending that borrowers act sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Jobless Claims
Jobless claims for the week of 10/19/17 came in at 222,000. That’s a big drop from last week’s reading of 244,000 and points toward a return to normal after the hurricanes. The 4-week moving average is now 248,250.
Philly Fed Business Outlook Survey
The Philly Fed Business Outlook Survey moved up to 27.9 for October.
Notable events this week:
Monday:
- Empire State Mfg Survey
- Fedspeak
Tuesday:
- Import and Export Prices
- Industrial Production
- Housing Market Index
Wednesday:
- Fedspeak
- Housing Starts
- EIA Petroleum Status Report
- Beige Book
Thursday:
- Jobless Claims
- Philly Fed Business Outlook Survey
Friday:
- Existing Home Sales
- Fedspeak
from Total Mortgage Blog http://ift.tt/2yzSVi9
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