We’re kicking off what should be a slow, holiday-shortened week with little movement for current mortgage rates. However, rates are expected to rise over the coming weeks, so we believe the prudent decision for borrowers is to take action sooner rather than later. Read on for more details.
Where are mortgage rates going?
Rates mostly flat to start the week
Here we go with another week. Trading volume in between Christmas and New Years is typically much lower than normal, so it’s possible that we don’t see mortgage rates move around that much over the next few days.
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The economic calendar for this week certainly plays into that type of scenario. There are a few reports out here and there but nothing that we expect to really sway market participants too far in one direction or another.
As we march on toward 2018, the big story for now is the jump in treasury yields last week after the Republican tax bill passed through Congress. Once news started to spread that the bill was going to get approved, we saw an immediate sell-off of government bonds, pushing yields higher.
The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, spiked up about twelve basis points last Tuesday. That pushed the 10-year yield up to a level not seen since March.
Of course, if we take a look at the Freddie Mac Primary Mortgage Market Survey results for 2017, we can see that the highest reading for rates this year also took place back in March.
It will be interesting to see what happens with the PMMS this week. The main takeaway here is that mortgage rates are on the rise. This is something that we’ve been expecting to happen, and that we expect to continue to happen over the coming weeks and months.
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Rate/Float Recommendation
Lock now
Given that rates are expected to gradually rise, we think that the smart decision is for borrowers to lock in a rate now in order to try and get the best deal possible on a purchase or refinance.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
S&P Corelogic Case-Shiller HPI
The 20-city seasonally adjusted index rose by 0.7% for October. The 20-city non seasonally adjusted index rose 0.2% for October, putting it at 6.4% year over year.
Richmond Fed Manufacturing Index
The Richmond Fed Mfg Index hit 20 for December. That’s slightly below the consensus for 23.
Dallas Fed Mfg Survey
The Dallas Mfg Survey came in at 29.7 for December.
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Notable events this week:
Monday:
- Closed for Christmas
Tuesday:
- S&P Corelogic Case-Shiller HPI
- Richmond Fed Manufacturing Index
- Dallas Fed Mfg Survey
Wednesday:
- Consumer Confidence
- Pending Home Sales Index
Thursday:
- International Trade in Goods
- Jobless Claims
- EIA Petroleum Status Report
Friday:
- Chicago PMI
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from Total Mortgage Blog http://ift.tt/2DUu3T9
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