It’s been a wild week in the markets but mortgage rates are on track to finish out the week at levels very close to where they were on Monday. With current mortgage rates continuing to move higher overall, the smart decision for most borrowers is to lock in a rate soon. Read on for more details.
Where are mortgage rates going?
Treasury yields move higher to end the week
Volatility was the name of the game this week with the big crash on Monday in the markets, and then a series of ups and downs that ultimately have brought long-term Treasury yields, which is what’s most important to mortgage rates, back to about where they started the week.
[tmslink name = “rates”]
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is up almost three basis points (one basis point = 0.01) on the day, putting it at 2.85%. It peaked briefly during early trading on Monday at 2.88% and bottomed out later that day at 2.65%.
The situation, in the bond market at least, quickly corrected itself with the 10-year yield moving higher on Tuesday, and continued on an overall upward trajectory for the rest of the week.
Mortgage rates typically move in the same direction as the 10-year yield, and are on the rise from where they were a week ago.
| [contentbox id=”10″] |
Here are the numbers from the latest Freddie Mac Primary Mortgage Market Survey, which is the most comprehensive mortgage rates survey for the United States:
- The average rate on a 30-year fixed rate mortgage moved up ten basis points to 4.32% (0.6 points)
- The average rate on a 15-year fixed rate mortgage went up nine basis points to 3.77% (0.5 points)
- The average rate on a 5-year adjustable rate mortgage increased four basis points to 3.57% (0.4 points)
Here is what Freddie Mac’s Economic & Housing Research Group had to say about current mortgage rates this week:
“The U.S. weekly average 30-year fixed mortgage rate rocketed up 10 basis points to 4.32 percent this week. Following a turbulent Monday, financial markets settled down with the 10-year Treasury yield resuming its upward march. Mortgage rates have followed. The 30-year fixed mortgage rate is up 33 basis points since the start of the year. Will higher rates break housing market momentum? It’s too early to tell for sure, but initial readings indicate housing markets are sustaining their momentum so far. The MBA reported that purchase applications are up 8 percent from a year ago in their latest Weekly Mortgage Applications Survey.”
[contentbox id=”3″]
Rate/Float Recommendation
Lock now before rates rise further
Mortgage rates continued to move higher this week. This is a trend that has persisted for five straight weeks with no end in sight. If you’re considering locking in a rate on a purchase or refinance, our recommendation is to take action sooner rather than later in order to try and get the best possible deal.
Find out how to get the best rate possible with our in-depth video series.
Today’s economic data:
Nothing
- Sorry, folks. Nothing to see here today.
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- PMI Services Index
- ISM Non-Mfg Index
Tuesday:
- International Trade
- Fedspeak
- JOLTS
Wednesday:
- Fedspeak
- EIA Petroleum Status Report
- 10-Yr Note Auction
Thursday:
- Fedspeak
- Jobless Claims
Friday:
- Nothing
[contentbox id=”3″]
from Total Mortgage Blog http://ift.tt/2H4L6Dl
No comments:
Post a Comment