Some remarks made by Secretary Treasury Steven Mnuchin are influencing the direction of the markets today and putting some upward pressure on mortgage rates.
We’re not talking about a strong surge but there is a notable push higher right now. The good news is that mortgage rates are still relatively low so if you’re looking to purchase or refinance now is a good time to do it. Read on for more details.
Market Outlook 1.22.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates move higher
Mortgage rates are on the rise today. The big news story dominating headlines right now comes out of the World Economic Forum in Davos where Secretary Treasury Steven Mnuchin made several comments that caught the eye of financial market participants, most notably that a “weaker dollar is good for us [the U.S.] as it relates to trade and opportunities.”
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He continued, stating that “Longer term, the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency.”
His comments caused the dollar to slip down to a three-year low, and is pushing up long-term Treasury yields. 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 about four basis points today to 2.65%.
Mortgage rates tend to move in the same direction as the 10-year yield and are similarly dealing with some upward pressure today. Rates have been on the rise for several weeks now and are expected to continue rising throughout 2018.
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Rate/Float Recommendation
Lock now while rates are low
While mortgage rates are definitely moving higher, they’re currently still at levels that are considered low on a historical perspective. If you’re considering refinancing your current mortgage or buying a new home, our recommendation is to 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:
FHFA House Price Index
Home prices moved up 0.4% in November. That puts the yearly change at 6.5%.
PMI Composite Flash
The PMI composite flash hit a 53.8 in January. Manufacturing hit a 55.5, while services came in at 53.3.
Existing Home Sales
Existing home sales for December hit an annualized rate of 5.570 M. That’s a monthly drop of 3.6%, bringing the year over year change to 1.1%.
EIA Petroleum Status Report
- Crude oil: -1.1 M barrels
- Gasoline: 3.1 M barrels
- Distillates: 0.6 M barrels
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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:
- International Trade in Goods
- Jobless Claims
- New Home Sales
- Kansas City Fed Manufacturing Index
Friday:
- Durable Goods Orders
- GDP
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from Total Mortgage Blog http://ift.tt/2E41EKy
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