The yield on the 10-year Treasury note surpassed a notable marker for investors today. As a result, we’re seeing some upward pressure on mortgage rates today.
If you’ve been considering getting a refinance or purchasing a home, we strongly recommend that you take action now in order to try and get the best rate. Read on for more details.
Market Outlook 1.8.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Treasury yields move higher
We’ve got some overseas news that’s affecting the domestic bond market today.
The Bank of Japan announced that they are reducing their bond buying program, which investors anticipate as a first step in a new direction for the BOJ. With less demand for bonds, yields are rising.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), has now crept up almost five basis points on the day, bringing it to 2.52%. This is the first time that its moved over 2.50% since March.
Mortgage rates typically move in the same direction as the 10-year yield, so we’re seeing some upward pressure on rates today. The way things are going, it seems as though this trend could continue into the weekend.
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Federal Reserve
It’s a big week for the Federal Reserve with a handful of speaking engagements from Fed officials. Yesterday, we started off the week hearing from three different Fed Bank Presidents.
Boston Fed President Eric Rosengren made some interesting inflation comments, stating that “My own view is that we should be focused on an inflation range, with the potential to move within the range as the optimal inflation rate changes.”
This is in contrast to the current policy, in which the Fed has a set target of 2.00% inflation.
We also heard from the Atlanta Fed President Raphael Bostic yesterday who said that the Fed might actually only need to increase the federal funds rate two or fewer times in 2018. That goes against the current belief that the Fed will hike four or more times this year.
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Rate/Float Recommendation
Lock now while rates are low
Mortgage rates moving higher, which is something we’ve been anticipating for some time. We expect them to continue rising over the coming weeks and moving, so it makes sense for most borrowers to try to lock in a rate now.
Getting a free rate quote is simple and fast with our Mortgage Builder. If you don’t feel like filling out a form, you can always call one of our loan specialists for a quick conversation.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Fedspeak
Minneapolis Fed President Neel Kashkari at 10:00am.
JOLTS
The Labor Department is reporting 5.879 million job openings in November. That’s almost 1% lower than the prior month.
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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/2Fisy1s
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