Here we go with another week. With little economic data out today financial market participants are still working with yesterday’s news that the U.S./China trade war is currently on hold. This has caused investors to move more into stocks, pushing up bond yields and mortgage rates. Read on for more details.
Where are mortgage rates going?
Rates hold higher to start the week
Current mortgage rates are kicking off the week by moving slightly higher from where they were on Friday.
Financial market participants are still digesting yesterday’s comments by Treasury Secretary Steven Mnuchin that the trade war between the U.S. and China is “on hold.”
Those comments created a more risk-on scenario for investors, decreasing the appetite for “safer” assets such as long-term government bonds.
This has caused the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, to move up a couple basis points on the day to 3.07%.
Mortgage rates tend to follow in the footsteps of the 10-year yield so rates are also up a touch today.
If we take a look at the economic calendar for the rest of the week, we can see that the data really doesn’t start to flow in until Wednesday. That’s when we’ll get PMI, New Home Sales, and the minutes from the Federal Open Market Committee a few weeks back.
Friday is the big day of the week as far as economic data is concerned. Bright and early we’ll get the Durable Goods report followed by the Consumer Sentiment report.
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Rate/Float Recommendation
Lock before rates move even higher
Mortgage rates seem poised to move higher and higher over the coming weeks and months. If you’re thinking about taking action on a purchase or refinance, our recommendation is to try and lock sooner rather than later. The longer you wait, the more likely it is that you’ll get a higher rate.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Chicago Fed National Activity Index
The Chicago Fed National Activity Index came in at a 0.34. That’s its highest mark of the entire expansion.
Fedspeak
- Atlanta Fed President Raphael Bostic at 12:15pm
- Philadelphia Fed President Patrick Harker at 2:15pm
- Minneapolis Fed President Neel Kashkari at 5:30pm
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Notable events this week:
Monday:
- Chicago Fed National Activity Index
- Fedspeak
Tuesday:
- Richmond Fed Manufacturing Index
Wednesday:
- PMI Composite Flash
- New Home Sales
- EIA Petroleum Status Report
- FOMC Minutes
- Fedspeak
Thursday:
- Jobless Claims
- FHFA House Price Index
- Existing Home Sales
- Kansas City Fed Manufacturing Index
- Fedspeak
Friday:
- Durable Goods Orders
- Consumer Sentiment
- Fedspeak
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from Total Mortgage Blog https://ift.tt/2rXvN9A
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