Mortgage rates are getting a little relief from the upward pressure that we’ve seen over the past few days. There’s really no telling when they will be in for another surge, though, which is why we’re recommending that borrowers act now on a purchase or refinance. Read on for more details.
Where are mortgage rates going?
Rates flat today
There’s been a lot of action this week but so far today things are relatively calm. The big news yesterday was a Bloomberg report that China is looking to cut back on its purchases of Treasurys.
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Later in the day there was some push back from China’s foreign-exchange regulator that the report wasn’t completely accurate, triggering a slight retreat but not enough to undo all of the day’s shift.
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 a little over ten basis points right now.
That puts it at 2.56%, which is up at levels not seen since March. Mortgage rates typically move in the same direction as the 10-year yield, and have been dealing with some significant upward pressure this week.
Here’s the latest data from the Freddie Mac Primary Mortgage Market Survey (PMMS):
- The average rate on a 30-year fixed rate mortgage is up four basis points this week to 3.99% (0.5 points)
- The average rate on a 15-year fixed rate mortgage is up six basis points this week to 3.44% (0.5 points)
- The average rate on a 5/1 year adjustable rate mortgage is up one basis point to 3.46% (0.4 points)
Here is what the Freddie Mac Economic and Housing Research group had to say about rates this week:
“After dipping slightly last week, Treasury yields surged this week amidst sell-offs in the bond market. The 10-year Treasury yield, for instance, reached its highest point since March of last year. Mortgage rates followed Treasury yields and ticked up modestly across the board. The 30-year fixed-rate mortgage averaged 3.99 percent, up 4 basis points from a week ago.”
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Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are moving higher. It’s something that we expect to continue throughout 2018, so we believe the smart decision for borrowers is to take action sooner rather than later.
For many, this will mean locking in a rate on a purchase or refinance, but at the very least you should be figuring out what your next steps are.
It only takes a few minutes online to fill out our Mortgage Builder and get a free rate quote, or a quick phone call to one of our mortgage specialists to get started.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Jobless Claims
Applications filed for U.S. unemployment benefits came in at 261,000 for the week of 1/6/18.
PPI-FD
Producer prices for December fell 0.1%, bringing the year over year reading down to 2.6%. PPI less food and energy also fell 0.1%, putting the year over year reading at 2.3%. PPI less food, energy and trade services rose 0.1% month over month, making it 2.3% year over year.
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Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Fedspeak
- JOLTS
Wednesday:
- Import and Export Prices
- Fedspeak
- EIA Petroleum Status
- 10-Yr Note Auction
Thursday:
- Jobless Claims
- PPI-FD
Friday:
- Consumer Price Index
- Retail Sales
- Business Inventories
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from Total Mortgage Blog http://ift.tt/2ASuRoQ
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