Current mortgage rates started to move higher yesterday after investors began to gain more of an appetite for riskier assets. Mortgage rates are holding at those levels today. The big economic event that could impact rates this week is the monthly jobs report for February on Friday. Read on for more details.
Market Outlook 3.5.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Mortgage rates flat today but higher on the week
We’re still fresh into the week but already we’ve seen current mortgage rates bounce around. The week kicked off with financial market participants moving more into the safe-haven play of government bonds.
This was in part due to the uncertainty surrounding both the Italian election and President Trump’s steel and aluminum tariffs. Investors did start to find their footing as the day unfolded, though, and the retreat from bonds into stocks wound up pushing Treasury yields higher.
We saw the yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) move up from 2.83% to 2.88%. Today, it’s down slightly at 2.87%.
Mortgage rates typically move in the same direction as the 10-year yield, so mortgage rates are higher than where they were yesterday morning but mostly flat on the day.
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So where are we going from here? Well, in the near-term it seems as though market participants are going to continue to be influenced by the trade rhetoric out of D.C.
A quick glance at the news headlines reveals that high ranking Republicans are trying to talk Trump out of his current position. Speaker of the House, Paul Ryan, made a clear statement that he doesn’t want a trade war to disrupt a strengthening U.S. economy.
Unsurprisingly, Trump remained steadfast in his position, stating on Monday “No, we are not backing down.” Still, the situation remains unclear and no know (per usual) knows exactly what Trump is going to do.
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Mortgage rates are poised to continue their steady climb in 2018. Already this year we’ve seen the average rate on the 30-year fixed rate mortgage move up close to fifty basis points (half a percentage point).
Learn what you can do to get the best interest rate possible.
This is just the beginning, too. According to many analysts we will see the 30-year fixed rate move up another fifty basis points by the time 2019 rolls around.
The point is: mortgage rates are on track to rise considerably, so borrowers who take action sooner rather than later are likely going to get the better deal on a purchase or refinance.
Today’s economic data:
Fedspeak
- New York Fed President William Dudley at 7:30am
- Fed Governor Lael Brainard at 7:00pm
- Dallas Fed President Robert Kaplan at 8:30pm
Factory Orders
- Factory orders for January fell by 1.4%.
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Notable events this week:
Monday:
- PMI Services Index
- ISM Non-Mfg Index
- Fedspeak
Tuesday:
- Fedspeak
- Factory Orders
Wednesday:
- Fedspeak
- ADP Employment Report
- International Trade
- Productivity and Costs
- EIA Petroleum Status Report
- Beige Book
Thursday:
- Jobless Claims
Friday:
- Employment Situation for February
- Fedspeak
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from Total Mortgage Blog http://ift.tt/2FgBnfT
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