Some disappointing economic data this morning is putting downward pressure on mortgage rates. This is good news for anyone looking to purchase or refinance. There is still a chance that rates rise on Friday when we get the monthly jobs report for November, so it’s important to keep an eye on that release. Read on for more details.
Market Outlook 12.4.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates down a little
We’re getting into the heart of the week today and so far we’ve seen mortgage rates gradually move lower.
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The economic data out this morning, namely the productivity and costs report, came in under expectations, causing investors to buy more into bonds.
The increase in demand is putting some downward pressure on bond yields, with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) moving lower by almost four basis points.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are improving today. All things considered, there hasn’t been that much to talk about this week.
The situation surrounding the Republican led tax bill is in a bit of a lull, as the two separate bills the Senate and House passed need to be reconciled. It’s a mostly private process, so there’s no noise coming out of D.C. at the moment for investors to pick up on.
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Rate/Float Recommendation
Lock now
Mortgage rates are moving lower today, which is good news for anyone looking to purchase or refinance.
Higher rates are still expected in the long-term, so we’re recommending that borrowers lock now. If you choose to hold off and wait, there is a definite risk that rates will be higher.
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 for November showed that 190,000 jobs were added to the U.S. economy. That’s not far off from the 186,000 that analysts had projected.
Productivity and Costs
For Q3:
- Nonfarm productivity: 3.0%
- Unit labor costs: -0.2%
EIA Petroleum Status Report
For the week of 12/1:
- Crude oil: M barrels
- Gasoline: M barrels
- Distillates: M barrels
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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/2BFEN5O
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