It’s a relatively quiet day for the market and that’s causing mortgage rates to stay mostly flat. We did get some inflation data this morning with the Producer Prices report, but the numbers weren’t strong enough to put much upward pressure on rates. Unless something unexpected happens, rates shouldn’t move too far today. Read on for more details.
Where are mortgage rates going?
Rates moving sideways
Mortgage rates are moving sideways this morning. The big news of the day so far is another disappointing inflation report. The Bureau of Labor Statistics Producer Prices Index rose 0.2% in August, failing to hit the 0.3% that analysts had projected.
That puts the year over year reading at 2.4%. The so-called core producer prices (less food and energy) also came in one tenth below expectations at a mere 0.1% monthly change. Inflation has been a thorn in the Federal Reserve’s side for many months now and it’s failure to pick up is a major factor in their decision to wait on another rate hike.
Next week the Federal Open Market Committee will meet to discuss the future of monetary policy in America. With the economic situation not really changing much from the last time they met, no one is really expecting anything different from them–it should just be another punt down the road for the federal funds rate.
Looking at the CME Group’s Fed Funds futures, we can see that December has the next best chance at a rate increase, but it’s only getting about a 40% chance. There is still time for things to turn around but the window is definitely closing.
Mortgage rates tend to move higher during times of economic growth and optimism, which is why haven’t seen rates rise to the levels in 2017 that were expected.
At the beginning of the year there were calls for the 30-year to be above 4.5% by the end of 2017. We’re nowhere near those levels right now, and that’s good news for borrowers.
What does this mean for me?
Find out how much you could save
Mortgage rates are sitting at levels that are very favorable for borrowers. Whether you’re looking to refinance your current mortgage or purchase a new home, the opportunity is definitely there to get a great deal and save money in the years to come.
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:
- PPI-FD – M/M = 0.2%
- PPI-FD – Y/Y = 2.4%
- Core PPI-FD – M/M = 0.1%
- Core PPI-FD – M/M = 2.0%
EIA Petroleum Status Report
For the week of 9/8/17:
- Crude oil: 5.9 M barrels
- Gasoline: -8.4 M barrels
- Distillates: -3.2 M barrels
Notable events this week:
- EIA Petroleum Status Report
- Consumer Price Index
- Jobless Claims
- Retail Sales
- Empire State Mfg Survey
- Industrial Production
- Business Inventories
- Consumer Sentiment
Filed Under: Current Mortgage Rates, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates, Rates
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