Mortgage rates are on track to finish out the week higher than where they started. The upward push was in part due to some global Treasury news and some domestic inflation readings.
We still believe that mortgage rates will continue rising in 2018, so borrowers should consider taking action on a refinance or purchase now. Read on for more details.
Where are mortgage rates going?
Rates flat today
It’s been a busy week for the bond market with a large spike early on in the week for Treasury yields after some talks about Japan and China cutting back on their Treasury purchases.
If we take a look at the yield of the 10-year Treasury note (the best market indicator of where mortgage rates are going), we can see that it jumped over ten basis points early on in the week, came down a little yesterday, but is now back on the rise today after a strong Core-CPI reading.
Mortgage rates typically move in the same direction as the 10-year yield, so rates definitely moved a little higher this week. This is a trend that we’ve been expecting for a while and believe will continue into the near future.
Lock now while rates are low
With mortgage rates expected to move higher over the coming weeks and months, it definitely makes sense for most borrowers to try and lock in a rate sooner rather than later.
You can get started by getting a free rate quote online with our Mortgage Builder or with a quick phone call to a mortgage specialist.
Today’s economic data:
Consumer Price Index
The December CPI readings are out today, showing a monthly rise of 0.1%, putting the year over year change at 2.1%. So called core-CPI (less food and energy) rose a notable 0.3%, putting it at 1.8% year over year.
Coming in at 0.3%, that’s one tenth higher than analysts had predicted. That’s enough to excite financial market participants.
Retail sales for December rose 0.4 from the previous month. Retail sales less autos also increased 0.4%, as did retail sales less autos and gas. The control group rose 0.3%.
Business inventories for November rose 0.4%. That’s one tenth higher than what analysts had expected.
Notable events this week:
- Import and Export Prices
- EIA Petroleum Status
- 10-Yr Note Auction
- Jobless Claims
- Consumer Price Index
- Retail Sales
- Business Inventories