Mortgage rates are flat today but that could change this afternoon when we get the latest statement from the Federal Open Market Committee. Read on for more details.
Where are mortgage rates going?
Rates still flat this week
The markets are still largely focused on tomorrow’s expected announcement from President Donald Trump about the next chair of the Federal Reserve; however, there is a decent distraction today in the Fed’s FOMC meeting conclusion.
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There’s no post-meeting press conference from Fed chair Janet Yellen, but we will get a written statement outlining their current monetary policy position.
Given that everyone and their mother is expecting the Fed to raise the federal funds rate by a quarter point in December, there’s really little they can do to further bolster that plan.
That puts them in the position of having more to lose than gain today. If they come off even slightly more dovish than investors find suitable, that would likely create some doubt and cause market optimism to retreat somewhat from its peak.
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Typically, when the markets grow more uncertain about the Fed’s upcoming plans, that pushes mortgage rates lower. Right now, we’re not seeing a lot of market action either way, which is keeping mortgage rates flat.
That’s been the theme all week, but starting this afternoon, we could see things start to shake up a little. Market action should continue tomorrow when we hear from Trump and get the tax reform bill, and on Friday with the monthly jobs report.
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Rate/Float Recommendation
Lock in your rate
Mortgage rates are flat again today. We still think that there is a threat for rates to rise tomorrow when Trump nominates the next chair of the Federal Reserve, so we’re recommending that anyone looking to purchase or refinance locks in a rate.
The long-term trend remains for rates to gradually increase so borrowers that act sooner rather than later are likely going to be better off.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
ADP Employment Report
The ADP employment report is showing that 235,000 jobs were added to the U.S. economy in October. That’s a big jump from the prior month’s revised reading of 110,000.
PMI Manufacturing Index
The PMI manufacturing index came in at 54.6 for October. That’s a tenth of a point higher than what was expected.
ISM Mfg Index
The ISM manufacturing index came in at 58.7 for October, which is slightly below what was expected.
Construction Spending
Construction spending rose 0.3% in September, putting the year over year change at 2.0%.
EIA Petroleum Status Report
For the week of 10/27/17:
- Crude oil: -2.4 M barrels
- Gasoline: -4.0 M barrels
- Distillates: -0.3 M barrels
FOMC Meeting Announcement
The Federal Reserve’s FOMC wraps up their meeting today with a written statement at 2:00pm.
Notable events this week:
Monday:
- Personal Income and Outlays
- Dallas Fed Mfg Survey
Tuesday:
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
Wednesday:
- ADP Employment Report
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- EIA Petroleum Status Report
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
- Productivity and Costs
- Fedspeak
Friday:
- Monthly Jobs Report
- International Trade
- PMI Services Index
- Factory Orders
- ISM Non-Mfg Index
- Fedspeak
Contact us today to see if we can save you money on your home payments.
from Total Mortgage Blog http://ift.tt/2z6Gw3V
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