Here comes another week. It’s a fairly slow day with no significant economic data out and a modest day on the news front. For now, rates are staying mostly flat, which is good news for anyone looking to buy or refinance. Read on for more details.
Where are mortgage rates going?
It’s the start of another week and we’re not seeing much action in the market right now. There’s not much economic data out today, so investors are looking elsewhere for news to trade on.
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Similar to last week, the situation around the Republican tax reform plan will be center stage this week as the bill goes up for debate in the Senate. The House of Representatives is expected to vote on the bill sometime this week.
The goal, of course, has been to streamline the bill and get signed by Trump by the end of the year. As we’ve seen over the past few weeks, the more optimistic investors are that the bill will get passed, the safer they feel moving into riskier assets such as stocks.
This brings money out of government bonds, pushing Treasury yields higher. Mortgage backed securities compete for similar investors as government bonds and therefore we see rates rise when Treasury yields increase.
Notably, rates had a minor surge on Friday after data out of Eurozone showed a strong economic recovery. We did get more news from across the pond this morning, this time dealing with the U.K.’s Prime Minister Theresa May.
In a new low, 40 MPs from her own Conservative party are reportedly on the cusp of issuing a vote of no confidence. It’s true that the claims have not been substantiated but enough financial market participants are believing it to be true for now to have an effect on the market, albeit a modest one in the U.S.
It’s important to keep an eye on that situation in the U.K., but for now, the tax reform situation will continue to be the main driver of the markets.
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Rate/Float Recommendation
Lock now
Mortgage rates are holding steady today but are still expected to rise over the long-term; therefore, we’re recommending that anyone who is considering a refinance or purchase lock in their rate sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
- Sorry, folks, but there’s nothing to see here today.
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Notable events this week:
Monday:
- Nothing
Tuesday:
- Fedspeak
- PPI-FD
Wednesday:
- Consumer Price Index
- Retail Sales
- Empire State Mfg Survey
- Business Inventories
- EIA Petroleum Status
- Fedspeak
Thursday:
- Jobless Claims
- Philly Fed Business Outlook Survey
- Import and Export Prices
- Industrial Production
- Fedspeak
Friday:
- Housing Starts
- Kansas City Fed Manufacturing Index
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from Total Mortgage Blog http://ift.tt/2AGii0R
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