Mortgage rates are flat to slightly higher right now. We did see a big jump in this week’s Freddie Mac PMMS that got released this morning. Looking at the big picture, though, mortgage rates are still at low levels.
They are expected to continue rising in 2018 so we’re recommending that borrowers take action sooner rather than later. Read on for more details.
Market Outlook 1.22.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates flat to slightly higher today
Mortgage rates are moving sideways today. A few hours ago the European Central Bank left their benchmark interest rate unchanged, with ECB President Mario Draghi stating that it will likely remain that way throughout 2018.
[tmslink name = “rates”]
The decision really came as no surprise to financial market participants, resulting in a very muted market reaction.
The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) is up a little over one basis point from the start of the day.
[contentbox id=”3″]
Rates Jump in Freddie Mac PMMS
Mortgage rates jumped up again this week in the Freddie Mac Primary Mortgage Market Survey. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage spiked up eleven basis points to 4.15% (0.05 points)
- The average rate on a 15-year fixed rate mortgage jumped up thirteen basis points to 3.62% (0.05 points)
- The average rate on a 5-year adjustable rate mortgage moved up six basis points to 3.52% (0.4 points)
Here is what the Freddie Mac’s Economic & Housing Research group had to say about mortgage rates this week:
“Rates keep climbing. The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.
The release of the December existing home sales data confirms that 2017 was the best year for home sales in over a decade. Will 2018 home sales outpace 2017? Homebuyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country. The FHFA reported that house prices increased 6.5 percent from November 2016 to November 2017, with all regions showing positive 12-month changes.”
Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are continuing to move higher. This is what has been expected for some time now, which is why we’ve been recommending that anyone looking to purchase a home or refinance their current mortgage takes action sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Jobless Claims
Jobless claims for the week of 1/20/18 came in at 233,000. That’s up from the prior revised reading of 216,000. The four-week moving average is now at 240,000.
New Home Sales
New Home Sales came in at an annualized rate of 625,000 for December. That’s a little below the consensus for 680,000.
Kansas City Fed Manufacturing Index
- 11:0am
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- Richmond Fed Manufacturing Index
- Fedspeak
Wednesday:
- FHFA House Price Index
- PMI Composite Flash
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- New Home Sales
- Kansas City Fed Manufacturing Index
Friday:
- International Trade in Goods
- Durable Goods Orders
- GDP
[contentbox id=”3″]
from Total Mortgage Blog http://ift.tt/2FcrZWo
No comments:
Post a Comment