Mortgage rates are on track to finish the week lower from where they started. Trade war concerns yesterday were the major driver of rates this week, despite the fact that we had an FOMC meeting on Wednesday that bumped up the federal funds rate. Read on for more details.
Where are mortgage rates going?
Rates on track to finish down on the week
On Monday, we knew that there was the potential for it to be a busy week. That’s what we got with the big market reactions happening on Wednesday and Thursday. Wednesday was, of course, the final day of the Federal Open Market Committee’s monetary policy meeting.
As expected, they raised the nation’s benchmark interest rate–the federal funds rate–by a quarter basis point, bringing the target range up to 1.50%-1.75%.
The more notable shift for investors was the fact that the number of FOMC members that believed a more aggressive rate hike path will be necessary down the road increased.
This caused more money to go into stocks and out of bonds, pushing up Treasury yields. The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, moved up several basis points in afternoon trading on Wednesday.
The rise was short-lived, however, as trade war concerns on Thursday immediately caused a market reversal, sending the 10-year yield down ten basis points from its high on the previous day. Today, Treasury yields are basically flat.
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Rate/Float Recommendation
Lock now while rates are lower
Right now is a great time to take action on a purchase or refinance. Mortgage rates are lower on the week, which is something that we haven’t been able to say many times in 2018.
With the Fed on track to continue raising rates throughout the year, mortgage rates will also gradually increase. Given this expectation, we strongly believe that most borrowers will be better off locking in a rate sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Fedspeak
- Atlanta Fed President Raphael Bostic at 8:10am
- Minneapolis Fed President Neel Kashkari at 10:30am
- Dallas Fed President Robert Kaplan at 11:30am
Durable Goods
A strong durable goods report for February is out this morning. New orders are up 3.1% from the prior month, putting them up 8.9% year over year.
New Home Sales
New Home Sales came in at an annualized rate of 618,000 for February.
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Notable events this week:
Monday:
- Fedspeak
Tuesday:
- FOMC Meeting Begins
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Announcement and Press Conference
Thursday:
- Jobless Claims
- FHFA House Price Index
- PMI Composite Flash
Friday:
- Fedspeak
- Durable Goods
- New Home Sales
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from Total Mortgage Blog http://ift.tt/2G2ybRv
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