Another week has come and gone. It was a fairly uneventful five days for the mortgage market with rates staying in a very tight range. If you’re looking to buy a home or refinance, we still believe you’re most likely going to be better off by locking in a rate soon. Read on for more details.
Where are mortgage rates going?
Rates continue to move sideways as we head into the weekend
There have been several weeks in 2018 where mortgage rates have bounced around all over the place. This has not been one of those weeks.
With no major economic reports getting released and relatively little happening on the political front, financial market participants were for the most part stuck in a holding pattern.
The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, did briefly touch 3.00% on Wednesday but quickly retreated back down on Thursday after the Consumer Price Index reading came in below expectations.
It now sits close to where it started the week, at 2.96%. Mortgage rates typically move in the same direction as the 10-year yield, so rates remained mostly unchanged this week.
Looking ahead to next week we still have a fairly light economic calendar, but there are a few reports that investors will have their eye on. We’ll also continue to hear different takes from Fed officials on the path forward for the U.S. economy.
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Rate/Float Recommendation
Locking now is likely the smart move
Mortgage rates barely moved this week. Any time they don’t rise is good news for anyone looking to buy or refinance.
Where do we go from here? It still seems as though rates are far more likely to rise in the coming weeks and months than fall.
Given this expectation, it stands to reason that most borrowers are going to get a better deal by taking action sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Fedspeak
- St. Louis Fed President James Bullard spoke this morning, commenting that the nation’s labor market is in an “appropriate situation that the Fed should not disturb.” He’s been championing a cautious rate hike approach in 2018 for a while now and the current data, he says, only reaffirms his position. Bullard is not a voting member of the FOMC this year.
Consumer Sentiment
- Consumer sentiment hit 98.8 in May. That’s unchanged from the prior month’s final reading.
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Notable events this week:
Monday:
- Fedspeak
Tuesday:
- NFIB Small Business Optimism Index
- JOLTS
Wednesday:
- PPI-FD
- 10-Yr Note Auction
- Fedspeak
Thursday:
- Consumer Price Index
- Jobless Claims
- Bloomberg Consumer Comfort Index
Friday:
- Fedspeak
- Consumer Sentiment
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from Total Mortgage Blog https://ift.tt/2G8de6J
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