January 18, 2018 by Leave a comment

Mortgage rates are continuing to move higher and higher in 2018. It’s a trend that seems to be here to stay for the indefinite future, as the economy strengthens and the Federal Reserve follows through with more increases to the federal funds rate.

If you’re considering taking action on a purchase or refinance, we strongly recommend that you act soon, if possible. Read on for more details.

Market Outlook 1.16.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?          

Rates rise again in Freddie Mac PMMS 

We’re moving quickly through another week, and as expected, mortgage rates are inching higher but remaining in a fairly tight range.

Click here to get today’s latest mortgage rates (Nov. 17, 2019).

Here are the numbers in the latest Freddie Mac Primary Mortgage Market Survey, which got released this morning:

  • The average rate on a 30-year fixed rate mortgage rose five basis points up to 4.04% (0.6 points)
  • The average rate on a 15-year fixed rate mortgage moved up five basis points to 3.49% (0.5 points)
  • The average rate on a 5-year adjustable rate mortgage stayed flat at 3.46% (0.3 points)

This is the first time the average rate on a 30-year fixed has crept over 4.00% since July. Here is what the Freddie Mac Economic & Housing Research Group had to say about rates this week:

“The U.S. weekly average for the 30-year fixed mortgage rate rose above 4 percent for the first time since last summer to 4.04 percent in this week’s survey. This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.

Some may be wondering if this is the last time we’ll see a three handle on the 30-year mortgage rate. Never say never, but inflation is firming, the Federal Reserve’s Beige Book indicates broad-based economic growth and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building.”

Rate/Float Recommendation      

Lock now while rates are low

Mortgage rates continue to move higher. This is a trend that we expect to stick around for a while now, which is why we’re recommending that borrowers take action on a purchase or refinance, sooner rather than later.

It really only takes a few minutes online to get a free rate quote. Don’t want to deal with an online form? No problem–just give one of our mortgage specialists a call and they can quickly get you started.

Click here to head to our Mortgage Builder and figure out how much you could save.    

Today’s economic data:              

Housing Starts 

  • Housing starts for December came in at an annualized rate of 1.192 M.
  • Permits came in for December at an annualized rate of 1.192 M.

Jobless Claims

Applications filed for U.S. unemployment benefits came in at 220,000 for the week of 1/13/18. The four-week moving average is now up to 244,500.

Philadelphia Fed Business Outlook Survey 

The Philly Fed General Business Conditions Index moved to a 22.2 in January.

EIA Petroleum Status Report 

  • 11:0am

Get the GreenLight and close in 21 days*     

Notable events this week:             

Monday: 

  • Nothing: Markets Closed for Martin Luther King Jr. Day

Tuesday:    

  • Empire State Mfg Survey

Wednesday:     

  • Industrial Production
  • Housing Market Index
  • Beige Book
  • Fedspeak

Thursday:       

  • Housing Starts
  • Jobless Claims
  • Philadelphia Fed Business Outlook Survey
  • EIA Petroleum Status Report

Friday:      

  • Consumer Sentiment

*Terms and conditions apply.

Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.


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