Here we go with another week. We’re seeing some positive results in the stock market today, while Treasury yields remain mostly flat, keeping mortgage rates steady.
It could be a busy week, though, with several important inflation reports out that could impact the direction of mortgage rates. If you’re thinking about a purchase or refinance, we believe it’s most likely that your best option is to lock in a rate soon. Read on for more details.
Where are mortgage rates going?
Treasury yields flat to start the week
After a brutal week last week, all of the major stock market indexes are on the rise. There’s no significant economic data out today, but President Trump is expected to unveil a major, $200 billion infrastructure spending plan.
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His excitement over the matter was reflected in a tweet his sent out this morning stating, “This will be a big week for Infrastructure.” Typically, spending plans like this are a boon for stocks and put upward pressure on Treasury yields.
If we check in with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), we can see that it’s at about 2.85%. That’s basically unchanged from where it was at the close of trading on Friday afternoon.
In early trading on Monday we did see the 10-year yield move up to a four-year high of 2.89%, but it has since retreated back down to its current position.
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Mortgage rates have a tendency to follow in the footsteps of the 10-year yield, so rates are moving sideways as we kick off the week. Looking ahead to the rest of the week, there are a number of opportunities for rates to adjust.
Inflation has been a hot topic, and one of the cited culprits in last week’s stock market decline, so it will be interesting to check in with the multiple inflation reports out this week and see what the numbers say.
First up, we’ll get three different reports on Wednesday: the Consumer Price Index, Retail Sales, and the Atlanta Fed Business Inflation Expectations. CPI and Retail Sales will get most of the attention, and they could certainly create a stir if they show inflation higher than levels that analysts expect.
Then on Thursday we’ll get another key inflation reading with the Producer Prices Index. On top of these inflation readings, we’ll also get several other economic reports out this week, including the Industrial Production report for January, and the Consumer Sentiment reading for February.
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Rate/Float Recommendation
Lock now before rates move higher
Mortgage rates have steadily risen throughout 2018, and there are no signs that they will stop doing so anytime soon.
Already, we’ve seen the average rate on a 30-year fixed rate mortgage rise thirty three basis points (one basis point = 0.01) since the start of the year in the Freddie Mac Primary Mortgage Market Survey.
If you’re considering buying a home or refinancing your current mortgage, we strongly recommend that you lock in a mortgage rate sooner rather than later in order to try and get the best rate possible. It only takes a couple minutes online or a quick phone call to one of our mortgage specialists to get started.
Find out how to get the best rate possible with our in-depth video series.
Today’s economic data:
Nothing
- There are no significant economic reports out today.
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Notable events this week:
Monday:
- Nothing
Tuesday:
- NFIB Small Business Optimism Index
- Fedspeak
Wednesday:
- Consumer Price Index
- Retail Sales
- Atlanta Fed Business Inflation Expectations
- Business Inventories
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Philadelphia Fed Business Outlook Survey
- PPI-FD
- Empire State Mfg Survey
- Industrial Production
- Housing Market Index
Friday:
- Housing Starts
- Import and Export Prices
- Consumer Sentiment
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from Total Mortgage Blog http://ift.tt/2o1gqu9
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