It’s been an up and down week for mortgage rates which are on track to finish the week slightly lower from where they started. Rates are poised to increase over the coming weeks and months so we’re recommending borrowers take action sooner rather than later. Read on for more details.
Where are mortgage rates going?
Rates finish the week lower
Well, we made it through another week. It was a busy one for the markets with several significant economic reports out and a Federal Open Market Committee (FOMC) meeting to boot.
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The FOMC meeting was certainly the highlight of the week (despite everyone knowing what was going to happen beforehand), with the Fed announcing that they would be raising the nation’s benchmark interest rate (the federal funds rate) by a quarter point to 1.25%-1.50%.
Given that market participants had anticipated this decision and had therefore already priced in the change there weren’t any big swings when the formal announcement was made on Wednesday afternoon.
We did see a slight rise in the 10-year Treasury note (the best market indicator of where mortgage rates are going) but it was only a couple basis points. In fact, the bigger swing came earlier on Wednesday when a key inflation reading showed that inflation was still running below the Fed’s target.
When it was all said and done on Wednesday, the drop earlier in the day was the bigger factor, keeping rates lower than where they had started the morning at, which is somewhat unusual for a day where the Fed announces a rate increase.
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Rate/Float Recommendation
Lock now
With the Fed raising interest rates and positioning itself to continue gradual increases, mortgage rates are poised for gradual increases as well. That’s why we think that the prudent decision for anyone looking to purchase or refinance is to lock in a 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:
Empire State Mfg Survey
The empire state general business conditions index came in at 18.0 for December. That’s a mild slowdown from the previous reading and is exactly what analysts had projected.
Industrial Production
Industrial production for November rose 0.2% from the previous month. Manufacturing also ticked up 0.2%, month over month.
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Notable events this week:
Monday:
- JOLTS
- 10-Yr Note Auction
Tuesday:
- FOMC Meeting Starts
- PPI-FD
Wednesday:
- Consumer Price Index
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- Jobless Claims
- Retail Sales
- Import and Export Prices
- Business Inventories
Friday:
- Empire State Mfg Survey
- Industrial Production
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from Total Mortgage Blog http://ift.tt/2zflHFd
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