Mortgage rates are easing today. We did see in the Freddie Mac PMMS today that mortgage rates moved higher for the ninth straight week.
Rates have been expected to climb higher throughout 2018, which is why we’ve been recommending that borrowers lock in a rate sooner rather than later. Read on for more details.
Where are mortgage rates going?
Mortgage rates slide today
News from across the pond that the European Central Bank is no longer saying that they will increase the pace of its bond-buying program if the economic environment deteriorated is affecting U.S. market this morning.
Financial market participants have moved more into bonds as a result, pushing down Treasury yields. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down about three basis points to 2.85%. Mortgage rates typically move in the same direction as the 10-year yield.
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Mortgage Rates Rise in the Freddie Mac Primary Mortgage Market Survey
The Freddie Mac PMMS got released today at 10am sharp and it showed that mortgage rates rose for the ninth consecutive week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage moved up three basis points to 4.46% (0.5 points)
- The average rate on a 15-year fixed rate mortgage went up four basis points to 3.94% (0.5 points)
- The average rate on a 5-year adjustable-rate mortgage moved up one basis point to 3.63% (0.4 points)
Here is what the Freddie Mac’s Economic & Housing Research Group had to say about rates this week:
“The 10-year Treasury yield has been bouncing around in a narrow 15 basis point range for the last month. While the yield on the 10-year Treasury is currently below the high of 2.95 percent reached two weeks ago, mortgage rates are up for the ninth consecutive week. The U.S. weekly average 30-year fixed mortgage rate rose 3 basis points to 4.46 percent in this week’s survey, its highest level since January 2014.”
It’s important to note that the data for the PMMS is collected early on in the week and therefore doesn’t necessarily reflect current market conditions. This is true today, as mortgage rates have moved a little lower.
Rate/Float Recommendation
Take action soon
Mortgage rates keep on climbing higher. The average rate on a 30-year fixed rate in the Freddie Mac PMMS has now risen fifty-one basis points since the start of the year.
Learn what you can do to get the best interest rate possible.
Many analysts are calling for another fifty basis point increase by the time 2019 rolls around. If you want to minimize the risk of getting a higher rate and paying more, then you should consider locking in a rate as soon as possible.
Today’s economic data:
Jobless Claims
Applications filed for U.S. unemployment benefits came in at 231,000. That’s up 11,000 from the prior reading (which was a 49-year low).
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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/2oTNfu5
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