Here we go with another week. Mortgage rates are holding steady as we kick things off, which is a trend that could persist for the entirety of the week as there’s very little significant economic data out to stir up the pot. Read on for more details.
Where are mortgage rates going?
Rates poised to stay near current levels for now
If you’re getting a little tired of hearing about the escalating trade tensions between the U.S. and China, you’re forgiven.
It seems that for the past month this story has ebbed and flowed in and out of the news headlines, and it’s somewhat difficult to muster up the same excitement for it as the first time it appeared.
However, we did get a hard development on Friday when President Donald Trump approved tariffs of 25% on nearly $50 billion of Chinese goods. This caused officials in Beijing to take retaliatory measures against the U.S. equaling the same value.
Financial market participants reacted by moving money more into the perceived safety of government bonds, pushing Treasury yields lower.
The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, is currently at 2.91%.
There have been some slight adjustments here and there but overall that yield has remained around 2.90% for all of June. Mortgage rates typically move in the same direction as the 10-year yield, and while we’ve seen mortgage rates bounce around a little more than the 10-year yield, they’ve still remained in a fairly tight range this spring.
Looking at the economic calendar for this week, there’s really no major economic reports that could send rates sprawling up or down. It’s more likely than not that the political realm will play more of an influence.
There are also several speaking engagements from Federal Reserve officials, and it will be interesting to hear what they have to say after last week’s FOMC decision to raise the nation’s benchmark interest rate by a quarter-point.
So what does all of this mean for mortgage rates this week? In all likelihood, mortgage rates will continue to hover around current levels over the next five days.
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Rate/Float Recommendation
Lock before rates rise
Mortgage rates have been hanging around a fairly tight range for the past few weeks and could very well continue to do so over the next several trading sessions.
However, the Federal Reserve did raise the federal funds rate last week and could potentially follow through with two more increases this year. That sets the stage for mortgage rates to finish out the year at levels that are much higher than where they are now.
For this reason, we are recommending that anyone looking to purchase a new home or refinance their current mortgage should try to lock in a rate sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Fedspeak
- Atlanta Fed President Raphael Bostic at 1:00pm
- San Francisco Fed President John Williams at 4:00pm
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Notable events this week:
Monday:
- Fedspeak
Tuesday:
- Fedspeak
- Housing Starts
Wednesday:
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Philadelphia Fed Business Outlook Survey
- FHFA House Price Index
Friday:
- PMI Composite Flash
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from Total Mortgage Blog https://ift.tt/2t6KJ65
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