Mortgage rates are basically flat today after a mixed bag of economic data got released. The situation around the Republican tax bill is still in the spotlight but it could be a little while before we get any notable breakthroughs on that front. Read on for more details.
Market Outlook 12.4.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat to higher today
Yesterday we saw an initial rise in Treasury yield and, therefore, mortgage rates as financial market participants got their first chance to adjust their holdings based on the news that the Republican led tax bill made its way through the senate.
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The situation now remains where the two separate bills cleared by the Senate and House must be reconciled and forged into one bill by the conference committee. The overarching framework for both of the bills is the same, but there are a few sticking points that need to be dealt with in order to move on.
While we might hear a word or two over the next several days about the status of the tax bill, we’re not anticipating any major breakthroughs that would have a significant impact on the markets.
So for today, it could be a somewhat of a quiet trading session. We’ve got some economic data out, but nothing that is going to sway investors too far in either direction.
If we take a 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 up about one basis point from where it started the day.
Mortgage rates typically move in the same direction as the 10-year yield so rates are about flat to slightly higher right now.
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Rate/Float Recommendation
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Mortgage rates have remained at very accommodating levels for borrowers throughout the majority of 2017. Given that it seems that tax cuts and gradual rate hikes from the Fed will likely happen, it stands to reason that rates will rise in the coming weeks and months.
For that reason, we’re recommending that borrowers take action sooner rather than later in order to try and get the best deal on a purchase or refinance.
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Today’s economic data:
International Trade
The Nation’s trade deficit widened to $48.7 billion in October. That’s a big jump up from the prior revised reading of $-44.9 billion.
PMI Services Index
The PMI services index for November came in at 54.5. That’s just a touch below what analysts had expected.
ISM Non-Mfg Index
The ISM non-mfg index came in at 57.4 for November. That’s slightly below what analysts had called for.
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Notable events this week:
Monday:
- Factory Orders
Tuesday:
- International Trade
- PMI Services Index
- ISM Non-Mfg Index
Wednesday:
- ADP Employment Report
- Productivity and Costs
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Employment Situation
- Consumer Sentiment
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from Total Mortgage Blog http://ift.tt/2zO90z8
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