Current Mortgage Rates for Wednesday, May 9, 2018

Mortgage rates have increased a little over the past twenty-four hours thanks to an impending long-term government bond auction this afternoon.

It’s important to keep an eye on that event as we move towards the end of the trading day. Read on for more details.

Where are mortgage rates going?              

Rates see modest increase

Mortgage rates are moving slightly higher from where they were at the start of the week.

The yield on the 10-year Treasury note briefly touched 3.00% again today as investors get antsy ahead of a $25 billion 10-year Treasury auction.

We’re also seeing the market affected by President Trump’s decision to pull the U.S. from the Iran nuclear deal.

The expectation here is for a tighter global oil supply, leading to higher prices.

That inflation pressure could play a part in forcing the Federal Reserve to increase rates at a faster pace in 2018 than expected.

Mortgage rates aren’t directly set by the federal funds rate, but the word out from the Fed certainly plays a part in which way rates move.

The more likely it looks like the Fed will raise the federal funds rate, the more upward pressure we will see on mortgage rates.

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Rate/Float Recommendation   

Locking now is likely the smart move      

Looking at the market right now, it seems as though mortgage rates will continue to gradually move higher as 2018 unfolds. Given that expectation, we think it’s wise for most borrowers to lock now.

Learn what you can do to get the best interest rate possible.  

Today’s economic data: 

PPI-FD   

Producer prices rose 0.1% month over month in April, putting them at 2.6% year over year.

Producer prices less food and energy rose 0.2% month over month, bringing it to 2.3% year over year.

Producer prices less food, energy, and trade services ticked up 0.1% month over month, making it 2.5% year over year.

10-Yr Note Auction  

• 1:00pm

Fedspeak  

• Atlanta Fed President Raphael Bostic at 1:15pm

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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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