Mortgage rates are dealing with some serious upward pressure this week due to the imminent passage of the Republican tax bill through Congress. With rates poised to continue moving higher over the coming weeks and months, we’re recommending that borrowers take action soon to try and get the best deal. Read on for more details.
Market Outlook 12.18.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates continue to rise on tax bill optimism
We’ve seen a significant shift in the markets so far this week as investors move out of the perceived safety of government bonds and into riskier assets such as stocks.
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This is in response to the increasing likelihood that the Republican tax bill will get passed by both the Senate and the House this week.
Early this morning the Senate approved the bill, and yesterday the House did as well, but the House bill will have to re-vote after technical changes needed to be made in order to stay compliant with the Byrd Rule.
Anticipating that the bill will get its final approval sometime today, President Trump has already organized a celebratory gathering at the White House.
So what does all of this mean for mortgage rates? Well, 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 at 2.48% right now.
That’s two basis points higher from the start of the day and a little over ten basis points from the start of the week. In fact, the 10-year yield has now climbed up to its highest position since March.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are dealing with some upward pressure this week.
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Mortgage rates are on the rise and they are positioned to move even higher. If you are considering buying a home or refinancing your current mortgage, we strongly recommend that you take action sooner rather than later in order to try and get the best rate.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Existing Home Sales
Existing Home Sales for November came in at 5.810 M. That’s a monthly change of 5.6%, putting the early change at 3.8%.
EIA Petroleum Status Report
For the week of 12/15:
- Crude oil: -5.1 M barrels
- Gasoline: 5.7 M barrels
- Distillates: -1.4 M barrels
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Notable events this week:
Monday:
- Housing Market Index
Tuesday:
- Housing Starts
- Fedspeak
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- GDP
- Jobless Claims
- Philly Fed Business Outlook
Friday:
- Durable Goods Orders
- Personal Income and Outlays
- New Home Sales
- Consumer Sentiment
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from Total Mortgage Blog http://ift.tt/2kuDZub
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