Mortgage rates are up again for the third straight week. With bond yields rising this week it was really no surprise that mortgage rates would move higher as well.
If you’re considering buying a home or refinancing your current mortgage, we recommend that you take action soon in order to try and lock in the best rate possible. Read on for more details.
Where are mortgage rates going?
Rates spike to highest since 2013
If you’ve been paying attention to what’s been going on in the market this week you know that the yield on the 10-year Treasury note moved up over 3.0% for the first time since 2011.
That mark is a key psychological threshold for investors, so it was a well-watched event that had investors near and far buzzing. Depending on who you listen to the rise was either a huge deal or a non-event.
Whether or not the crossover is truly significant in the long-run didn’t negate the fact that the vast majority of financial market participants were carefully monitoring the situation and making moves based off of what happened.
Mortgage rates tend to move in the same direction as the 10-year yield and so it’s really no surprise that we saw them move higher this week.
Here are the numbers from this week’s Freddie Mac Primary Mortgage Market Survey:
- The average rate on a 30-year fixed rate mortgage jumped up eleven basis points to 4.58% (0.5 points)
- The average rate on a 15-year fixed rate mortgage went up eight basis points to 4.02% (0.4 points)
- The average rate on a 5-year adjustable rate mortgage moved up seven basis points to 3.74% (0.07 points)
Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:
“Mortgage rates increased for the third consecutive week, climbing 11 basis points to 4.58 percent. Rates are now at their highest level since the week of August 22, 2013. Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week.
Despite the increase in borrowing costs, demand for home purchase credit remains solid. The Mortgage Bankers Association reported in their latest mortgage applications survey that activity was up 11 percent from a year ago.”
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Rate/Float Recommendation
Lock now before rates get higher
Mortgage rates have resumed a steady climb and have now risen for the third consecutive week.
Given that it seems as though they will continue to rise over the coming weeks and months, it makes sense for borrowers to lock in a rate sooner rather than later.
The longer you wait, the more likely it is that rates will be higher when you finally choose to lock.
It only takes a few minutes with our online form or a quick phone call to one of our mortgage experts to get started on the path toward ideal home financing.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Durable Goods Orders Are Mixed
Durable goods orders came in way above expectations in March with the monthly change for new orders up 2.6% compared to the 1.7% rise that analysts had expected.
That puts new orders up 9.5% year over year. Ex-transportation was unchanged in March, putting the year over year change at 6.7%.
Core capital goods actually fell 0.1% in March, putting the year over year change at 7.0%. This is the third time in four months that core capital goods have declined.
The big influencer this month (surprise, surprise) came out of the aircraft industry, as civilian aircraft orders put up a monthly gain of 44.5%.
International Trade in Goods
In a change of pace, the nation’s trade deficit narrowed in March, coming in at $68.0 billion compared to the $74.5 billion that analysts had predicted.
Jobless Claims
Applications filed for U.S. unemployment benefits came in at 209,000 for the week of 4/21/18. That puts the four-week moving average at 229,250.
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Notable events this week:
Monday:
- Chicago Fed National Activity Index
- PMI Composite Flash
- Existing Home Sales
Tuesday:
- S&P Corelogic Case-Shiller HPI
- FHFA House Price Index
- New Home Sales
- Consumer Confidence
- Richmond Fed Manufacturing Index
Wednesday:
- EIA Petroleum Status
Thursday:
- Durable Goods Orders
- International Trade in Goods
- Jobless Claims
Friday:
- GDP
- Employment Cost Index
- Consumer Sentiment
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from Total Mortgage Blog https://ift.tt/2r2EEWb
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