July 6, 2017 by Leave a comment

Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.

Where are mortgage rates going?

Mortgage rates resume rise

Mortgage rates are moving higher again this morning as the global bond selloff continues. Financial market participants got another nudge toward tighter monetary policy when the head of the Bank of France, Francois Villeroy, said that interest rates are poised to move higher.

Click here to get today’s latest mortgage rates (Sep. 21, 2019). 

The whole global bond selloff began when European Central Bank President Mario Draghi came out and intimated that the end to their stimulus program was drawing close. Villeroy’s comments are reinforcing that notion, and treasury yields have moved higher because of it.

The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is up about six basis points from where it started the day. That brings it up to 2.38%. Mortgage rates usually move in the same direction as the 10-year yield, so rates are trending higher.

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Rates have been heading higher since last Tuesday (when Draghi made his comments). Here is what the Freddie Mac Primary Mortgage Market Survey is showing for rates this week:

  • The average rate on a 30-year fixed rate mortgage rose eight basis points to 3.96% (0.6 point)
  • The average rate on a 15-year fixed rate mortgage rose five basis points to 3.22% (0.5 point)
  • The average rate on a 5-year adjustable rate mortgage rose four basis points to 3.21% (0.5 point)

This is what chief economist Sean Becketti had to say about this past week for mortgage rates:

“Global interest rates turned up sharply over the last week. The 10-year Treasury yield was no exception, increasing 10 basis points in a holiday-shortened week. The 30-year mortgage rate followed suit, rising 8 basis points to 3.96 percent.”

What does this mean for me?

Rates still good for borrowers

Mortgage rates have been moving higher, but they’re still at very accommodating levels for anyone looking to purchase a home or refinance their current mortgage.

To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. Or, if you’d rather talk to someone, you can always call one of our experienced mortgage specialists.

They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.

Today’s economic data:

Fedspeak

  • San Francisco Fed President John C. Williams at 3:45am
  • Fed Governor Jerome Powell at 10:00am

International Trade

The international trade gap narrowed to $46.5 B for May. That’s basically right in line with the consensus for a gap of $46.2 B.

Jobless Claims

Jobless claims for the week of 7/1/17 came in at 248,000. That’s 4,000 higher than both the previous week and the consensus for this week. The 4-week moving average is now 243,000.

ISM Non-Mfg Index

The ISM non-mfg index came in at 57.4 for June. That’s a strong number and is up 0.5 from the previous reading.

EIA Petroleum Status Report

  • Will get released at 11:00am.

Notable events this week:                                                                                  

Monday:       

  • Fedspeak
  • PMI Manufacturing Index
  • ISM Manufacturing Index
  • Construction Spending

Tuesday:   

  • Markets Closed – July 4th

Wednesday:   

  • Factory Orders
  • FOMC Minutes

Thursday:     

  • Fedspeak
  • International Trade
  • Jobless Claims
  • ISM Non Mfg Index
  • EIA Petroleum Status Report

Friday:    

  • Employment Situation

Rates are still near 2017 lows. Contact us today to see if we can save you money on your home payments.   

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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