Mortgage rates are moving higher again. It’s not much of a surprise, though, as this has been the expectation for 2018 for quite some time. It does mean, however, that if you’re looking to buy a home or refinance your current mortgage, you should try to take action as soon as possible in order to try and get the lowest rate. Read on for more details.
Market Outlook 1.29.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates continue to move higher
It’s another week and mortgage rates are continuing to move higher.
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The Freddie Mac Primary Mortgage Market Survey, which gets released every Thursday at 10:00am sharp every week, showed another notable uptick.
Here are the numbers:
- The average rate on a 30-year fixed rate mortgage jumped up seven basis points to 4.22% (0.5 points)
- The average rate on a 15-year fixed rate mortgage moved up six basis points to 3.68% (0.5 points)
- The average rate on a 5/1-year adjustable rate mortgage ticked one basis point higher to 3.53% (0.4 points)
Here is what the Freddie Mac Economic & Housing Research Group had to say about mortgage rates this week:
“The Federal Reserve did not hike rates this week, but the market views future hikes as a near certainty. The expectation of future Fed rate hikes and increased borrowing by the U.S. Treasury is putting upward pressure on interest rates. The 30-year fixed rate mortgage is up over a quarter of a percentage point (27 basis points) from the first week of the year. 30-year fixed mortgage rates have increased for four consecutive weeks and are now slightly above where they were last year at this time.”
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Rate/Float Recommendation
Lock now before rates move even higher
Mortgage rates are continuing to climb higher and higher. Already this year the average rate on the 30-year fixed has risen twenty seven basis points, according to the Freddie Mac PMMS.
There doesn’t seem to be an end in sight for the rise, so we’re recommending that anyone looking to purchase a home or refinance their current mortgage locks in a rate 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 1/27/18 came in at 230,000. That puts the 4-week moving average up to 234,500.
Productivity and Costs
Nonfarm productivity fell 0.1% quarter/quarter in Q4 of 2017.
PMI Manufacturing Index
The PMI manufacturing index crept up to 55.5 in January, which is exactly where analysts had predicted it would rise to.
ISM Mfg Index
The ISM Mfg index hit 59.1 in January. That’s above the consensus but below the prior month’s reading.
Construction Spending
Construction spending rose 0.7% month over month in December. That brings it to 2.6% year over year.
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Notable events this week:
Monday:
- Personal Income and Outlays
- Dallas Fed Mfg Survey
Tuesday:
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- President Trump State of the Union Address
Wednesday:
- ADP Employment Report
- Employment Cost Index
- Chicago PMI
- Pending Home Sales Index
- EIA Petroleum Status Report
- FOMC Meeting Announcement
Thursday:
- Jobless Claims
- Productivity and Costs
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
Friday:
- Employment Situation
- Consumer Sentiment
- Factory Orders
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from Total Mortgage Blog http://ift.tt/2E7VAmP
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