Stocks are moving higher today but mortgage rates are trending lower. We did get some economic data out this morning but it wasn’t enough to shake investors completely out of the dip they built as they awaited the Existing Home Sales report. The good news for borrowers is that this means rates are still at very favorable levels. Read on for more details.
Market Outlook 11.20.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat to start the week
Here we go into another trading day. It’s a holiday shortened-week with the U.S. markets closed on Thursday for Thanksgiving, so it wouldn’t be unusual for muted trading action from investors over the next few days, especially when you consider that there isn’t much economic data out.
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Today, though, we did get the Existing Home Sales report for October. Financial market participants were moving out of stocks as they awaited that release this morning.
Once the report dropped, which showed a surprising 2.0% jump from the previous month’s reading, we did see a slight retreat back into stocks, but not enough to bring yields back to where they started the day.
If we look at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) we can see that it’s down a little over two basis points on the day. Mortgage rates typically move in the same direction as the 10-year yield, so rates are moving a little lower today.
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Rate/Float Recommendation
Lock now
Mortgage rates are trending lower today. The long-term trajectory is for rates to rise, so we’re recommending that borrowers lock in a rate sooner rather than later.
If you choose to float, there might be a few dips here and there that you could get in on, but timing the market like that is very difficult and not-advisable to try as you face a definite risk of locking in a higher rate.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Existing Home Sales
Existing home sales for October jumped up .20% to an annualized rate of 5.480 M. That cuts the year over year change to -0.9%.
Fedspeak
- Fed Chair Janet Yellen at 6:00pm
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- Nothing
Tuesday:
- Existing Home Sales
- Fedspeak
Wednesday:
- Durable Goods Orders
- Jobless Claims
- Consumer Sentiment
- EIA Petroleum Status Report
- FOMC Minutes
Thursday:
- Markets Closed: Thanksgiving
Friday:
- PMI Composite Flash
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from Total Mortgage Blog http://ift.tt/2mOF8Aw
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