Mortgage rates are mostly flat today as investors await to hear the results of the final Senate vote on the Republican led tax reform bill. If the bill gets passed, we would likely see mortgage rates move higher. Read on for more details.
Where are mortgage rates going?
Tax vote in focus
The big news this morning is the situation surrounding the Republican led tax bill. Last night, the Senate voted to begin debating the bill, and as the debate is limited to 20 hours, a vote will have to take place sometime soon.
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While it’s not entirely clear if the Republicans have enough support to pass the bill (they can only lose 2 votes since the Democrats unanimously oppose the bill), it does seem as though it will pass.
If the bill does pass, financial market participants would likely rush out of government bonds and into riskier assets such as stocks, pushing Treasury yields and mortgage rates higher.
Freddie Mac PMMS
The good news is that, for now, mortgage rates are staying at very accommodating levels for borrowers. Here are the numbers from the Freddie Mac Primary Mortgage Market Survey this morning:
- The average rate on a 30-year fixed rate mortgage ticked down three basis points to 3.92% (0.5 points)
- The average rate on a 15-year fixed rate mortgage rose one basis point to 3.32% (0.4 points)
- The average rate on a 5-year adjustable rate mortgage rose one basis point to 3.22% (0.4 points)
It’s important to note that data for the survey is collected early on in the week, and therefore doesn’t necessarily reflect current market conditions. Yesterday morning, we did get a very solid GDP report which sparked a sell-off in the bond market, pushing Treasury yields are rates higher.
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Rate/Float Recommendation
Lock now
Mortgage rates are on pace to rise over the coming weeks and months. Given that rates are still at favorable levels for borrowers, we’re recommending that anyone thinking of purchasing a home or refinancing locks 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:
Jobless Claims
Applications filed for U.S. unemployment benefits hit 238,000 for the week of 11/25.
Personal Income and Outlays
Here is the data from the October Personal Income and Outlays report:
- Personal income rose 0.4% m/m
- Consumer spending rose 0.3% m/m
- The PCE Price Index ticked up 0.1% m/m and 1.6% y/y
- Core PCE rose 0.2% m/m and 1.4% y/y
Chicago PMI
Chicago PMI came in at 63.9 for November.
Fedspeak
- Cleveland Fed President Loretta Mester at 8:30am and 12:30pm
- Dallas Fed President Robert Kaplan at 1:00pm
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- New Home Sales
- Dallas Fed Mfg Survey
- Fedspeak
Tuesday:
- International Trade in Goods
- FHFA House Price Index
- S&P Corelogic Case-Shiller HPI
- Fedspeak
- Consumer Confidence
- Richmond Fed Mfg Index
Wednesday:
- GDP
- Fedspeak
- Pending Home Sales Index
- EIA Petroleum Status Report
- Beige Book
Thursday:
- Jobless Claims
- Personal Income and Outlays
- Chicago PMI
- Fedspeak
Friday:
- Fedspeak
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
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from Total Mortgage Blog http://ift.tt/2zSPEg5
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