Total Mortgage Blog https://www.totalmortgage.com/blog Today's Mortgage and Housing News Mon, 16 Jul 2018 16:43:30 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.5 https://www.totalmortgage.com/blog/wp-content/uploads/2016/02/cropped-logo_arrows_75x75-32x32.png Total Mortgage Blog https://www.totalmortgage.com/blog 32 32 Current Mortgage Rates Move Higher on Monday https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-move-higher-on-monday/38303 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-move-higher-on-monday/38303#respond Mon, 16 Jul 2018 16:43:30 +0000 https://www.totalmortgage.com/blog/?p=38303 View Article]]> Here we go with another week. After some positive economic data mortgage rates have moved slightly higher. We have several notable economic reports out over the next few days as well as the ongoing trade talk concerns, so rates could move around a little. Read on for more details.

Where are mortgage rates going?                                      

Mortgage move higher after retail sales report

The retail sales report for June got released today, and it showed a healthy uptick of 0.5% from the previous month. Not only that, but the May reading got revised from a month over month rise of 0.8% to 1.3%.

All of the news outlets are reporting on this story and citing how it demonstrates that the U.S. economy finished out the second-quarter on a high note.

Given the perceived strength of the economy, financial market participants are taking on more risk today, moving money out of the safe haven of long-term government bonds and into stocks.

This is pushing the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, up almost five basis points on the day.

Mortgage rates typically move in the same direction as the 10-year yield, so we’re seeing a little upward pressure to start the week.

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Rate/Float Recommendation                                

Lock now before move even higher    

Mortgage rates are on track to increase over the coming months as the Federal Reserve gets ready to, and follows through with more increases to the nation’s benchmark interest rate.

To avoid locking in a higher interest rate, we recommend that borrowers take action on a purchase or refinance, sooner rather than later.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:          

Retail Sales 

Retail sales for June increased by 0.5% month over month. Retail sales less autos rose 0.4%. Retail sales less autos and gas ticked up 0.3%. The control group was unchanged.

Overall, it’s a solid report that points toward a strong finish for consumer spending in the second-quarter.

Empire State Mfg Survey

The General Business Conditions Index for July hit 22.6. That’s just a hair above the 22.0 that analysts had predicted.

Business Inventories

Business inventories increased by 0.4% in May.

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Notable events this week:     

Monday:   

  • Retail Sales
  • Empire State Mfg Survey
  • Business Inventories

Tuesday:   

  • Industrial Production
  • Housing Market Index
  • Fedspeak

Wednesday:         

  • Housing Starts
  • EIA Petroleum Status Report
  • Beige Book
  • Fedspeak

Thursday:     

  • Jobless Claims
  • Philadelphia Fed Business Outlook Survey

Friday:          

  • Nothing

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*Terms and conditions apply.

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Mortgage Rates Creep Higher This Week https://www.totalmortgage.com/blog/current-mortgage-rates/mortgage-rates-creep-higher-this-week/38300 https://www.totalmortgage.com/blog/current-mortgage-rates/mortgage-rates-creep-higher-this-week/38300#respond Thu, 12 Jul 2018 15:49:52 +0000 https://www.totalmortgage.com/blog/?p=38300 View Article]]> Mortgage rates have moved up slightly this week. They are still hovering in the tight range that they’ve been in for the past couple of months, but we did see a modest nudge higher. If you’re considering a purchase or a refinance, we believe the smart move is to lock in a rate soon. Read on for more details.

Market Outlook 7.9.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?                                      

Mortgage rates nudge higher

It’s been a fairly uneventful week (unless you count the drama in the World Cup), keeping mortgage rates from moving too far in either direction. Long-term Treasury yields have moved up and down, but are ultimately resting at levels very close to where they were at the start of the week.

In the headlines, analysts are still talking about the global trade war that is taking place, with the U.S. and China being the main players here. It’s definitely an interesting situation at the moment because no one really knows exactly where we are headed.

What we can say, though, is that with the inflation readings this week coming in at strong levels and last week’s monthly jobs report showing a healthy labor market, the Federal Reserve is posed to continue raising the nation’s benchmark interest rate.

This might not put immediate upward pressure on mortgage rates, but as we move through the third and fourth quarter this year it is reasonable to expect mortgage rates to increase.

We did get the Freddie Mac Primary Mortgage Market Survey (PMMS) today, which showed that rates inched higher. Here are the numbers:

  • The average rate on a 30-year fixed rate mortgage moved up one basis point to 4.53% (0.4 points)
  • The average rate on a 15-year fixed rate mortgage moved up three basis points to 4.02% (0.4 points)
  • The average rate on a 5-year adjustable rate mortgage increased twelve basis points to 3.86% (0.3 points)

Here is what the Economic and Housing Research Group at Freddie Mac had to say about rates this week:

“Mortgage rates were mostly unchanged, but did tick up for the first time since early June.

The 10-year Treasury yield continues to hover along the same narrow range, as increased global trade tensions are causing investors to take a cautious approach. This in turn has kept borrowing costs at bay, which is certainly welcoming news for those looking to buy a home before the summer ends.

A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits. This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search.”

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Rate/Float Recommendation                                

Lock now before rates rise          

Given that mortgage rates are expected to rise over the coming weeks and months, we believe the smart move for most borrowers is going to be to lock in a rate sooner rather than later.

The longer you wait, the more likely it is that you will be locking in a higher rate. It only takes a few minutes or a quick phone call to get started.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

Consumer Price Index

The Consumer Price Index for June rose 0.1% from the previous month, putting it at a year over year change of 2.9%. CPI less food and energy rose 0.2% month over month, putting it at 2.3%, year over year. The monthly reading for June is notable in that it’s a six-year high.

Jobless Claims

Applications filed for U.S. unemployment benefits came in at 214,000 for the week of 7/7/18. That puts the four-week moving average at 223,000. It’s a drop of 18,000 from the previous week.

Fedspeak

  • Philadelphia Fed President Patrick Harker at 12:15pm.
  • Minneapolis Fed President Neel Kashkari at 8:00pm.

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Notable events this week:     

Monday:   

  • Fedspeak

Tuesday:   

  • NFIB Small Business Optimism Index
  • JOLTS

Wednesday:         

  • PPI-FD
  • EIA Petroleum Status Report
  • Fedspeak
  • 10-Year Note Auction

Thursday:     

  • Consumer Price Index
  • Jobless Claims
  • Fedspeak

Friday:          

  • Consumer Sentiment
  • Fedspeak
  • Import and Export Prices

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*Terms and conditions apply.

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Current Mortgage Rates for Monday, July 9, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-july-9-2018/38293 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-july-9-2018/38293#respond Mon, 09 Jul 2018 13:31:01 +0000 https://www.totalmortgage.com/blog/?p=38293 View Article]]> Here we go with another week. We’re expecting mortgage rates to continue to stay in a narrow range. Long-term rates are expected to rise so we’re recommending anyone thinking about a purchase or refinance to lock in a rate sooner rather than later. Read on for more details.

Market Outlook 7.9.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?                                      

Inflation data in the cross-hairs

The week following the monthly jobs report is historically a quiet one. While it’s true we aren’t going to get flooded with economic data, there are a few key inflation reports scheduled for release that investors will certainly have their eyes on.

It starts on Wednesday with the Producer Prices reading for June. The consensus is an increase of 0.2% across the board, which is healthy but not robust. Anything above or below that mark would have a greater impact on the markets.

After that report, we have the Consumer Prices Index on Thursday. This will be the more interesting release, with the Federal Reserve no doubt paying attention to see if CPI rises by at least 0.2%.

With inflation continuing to move higher, the Fed will remain in a position to raise the nation’s benchmark interest rate, the federal funds rate, two more times this week. So what does this mean for the direction of mortgage rates?

Well, it all comes down to what the actual data says. Right now it’s looking like we’ll get some moderately strong readings which would put some upward pressure on mortgage rates, but not a lot.

Mortgage rates have remained in a fairly tight range for the past couple of months now, something that is somewhat of a surprise after the rapid escalation that took place in the first half of the year.

It’s kind of an interesting situation at the moment because rates have seen modest declines in four out of the last six weeks in the Freddie Mac Primary Mortgage Market Survey (PMMS); however, all signs point toward an uptick for rates toward the end of the year as the Fed follows through with their interest rate hikes.

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Rate/Float Recommendation                                

Lock while rates are down              

Given that mortgage rates are widely expected to rise significantly by the end of the year, we believe that the smart decision for most borrowers is to lock in a rate on a purchase or refinance sooner, rather than later. The longer you wait the more likely it is that you’ll get a higher mortgage rates.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

Fedspeak 

  • Minneapolis Fed President Neel Kashkari at 9:10am

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Notable events this week:     

Monday:   

  • Fedspeak

Tuesday:   

  • NFIB Small Business Optimism Index
  • JOLTS

Wednesday:         

  • PPI-FD
  • EIA Petroleum Status Report
  • Fedspeak
  • 10-Year Note Auction

Thursday:     

  • Consumer Price Index
  • Jobless Claims
  • Fedspeak

Friday:          

  • Consumer Sentiment
  • Fedspeak
  • Import and Export Prices

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*Terms and conditions apply.

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Current Mortgage Rates for Thursday, July 5, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-thursday-july-5-2018/38290 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-thursday-july-5-2018/38290#respond Thu, 05 Jul 2018 16:15:17 +0000 https://www.totalmortgage.com/blog/?p=38290 View Article]]> It’s back to work after the holiday but mortgage rates aren’t really moving around much. The big economic event of the week will happen tomorrow morning when the monthly jobs data for June gets released. We could certainly see mortgage rates move around when that happens so keep an eye out for any market adjustments. Read on for more details.

Where are mortgage rates going?                                    

Rates decline in Freddie Mac PMMS

After being closed on Wednesday for July 4th, the markets are open again. As one would expect, it’s a fairly quiet day, keeping mortgage rates basically unchanged.

Current mortgage rates have bounced around a little this week but are still staying in a narrow range. It was good news for anyone looking to purchase or refinance today as the Freddie Mac Primary Mortgage Market Survey (PMMS) showed that rates declined again. Here are the numbers:

  • The average rate on a 30-year fixed rate mortgage fell three basis points to 4.52% (0.5 points)
  • The average rate on a 15-year fixed rate mortgage sunk five basis points to 3.99% (0.4 points)
  • The average rate on a 5-year adjustable rate mortgage dropped thirteen basis points to 3.74% (0.3 points)

Here is what the Freddie Mac Economic and Housing Research Group had to say about rates this week:

“After a rapid increase throughout most of the spring, mortgage rates have now declined in five of the past six weeks.

The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points. What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.

Although the current economic expansion is in its 10th year, residential single-family real estate was initially slow to recover. Now, backed by the demographic tailwind provided by millennials reaching the peak age to buy their first home, the housing market should have some room to grow going forward.”

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Rate/Float Recommendation                               

Lock while rates are down             

Mortgage rates have stayed in a tight range these past couple of months but are still expected to move higher later this year as the Fed brings the nation’s benchmark interest rate up.

If you are thinking about buying a home or refinancing your current mortgage, we strongly recommend that you take advantage of today’s environment and lock in a rate.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

ADP Employment Report

The ADP Employment Report showed that 177,000 jobs were added to the U.S. economy in June. That’s slightly below the 190,000 that analysts had projected. The ADP report is the precursor to the more influence jobs report that will be released tomorrow morning. The two reports don’t always sync up, so it’s hard to make any assumptions about tomorrow’s numbers.

Jobless Claims

Applications filed for U.S. unemployment benefits for the week of 6/30/18 came in at 231,000. That puts the four-week moving average at 224,500. Claims have been getting higher recently, but analysts are still expecting a strong jobs report tomorrow.

PMI Services Index

The PMI Services Index came in exactly as expected at 56.5.

ISM Non-Mfg Index

The ISM Non-Mfg Index struck a 59.1 in June. That’s basically right in line with what was expected.

FOMC Minutes

The FOMC Minutes from the Fed’s meeting a few weeks ago will be released this afternoon at 2pm. It’s always possible that investors will make some trades based on the details that are revealed.

EIA Petroleum Status Report

For the week of 6/29/18:

  • Crude oil: 1.2 M barrels
  • Gasoline: -1.5 M barrels
  • Distillates: 0.1 M barrels

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Notable events this week:     

Monday:   

  • PMI Manufacturing Index
  • ISM Mfg Index
  • Construction Spending

Tuesday:   

  • Nothing

Wednesday:         

  • Markets Closed: July 4th

Thursday:     

  • ADP Employment Report
  • Jobless Claims
  • PMI Services Index
  • ISM Non-Mfg Index
  • FOMC Minutes
  • EIA Petroleum Status Report

Friday:          

  • Employment Situation
  • International Trade

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*Terms and conditions apply.

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Current Mortgage Rates for Monday, July 1, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-july-1-2018/38284 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-july-1-2018/38284#respond Mon, 02 Jul 2018 14:44:11 +0000 https://www.totalmortgage.com/blog/?p=38284 View Article]]> We’re expecting mortgage rates to remain in a tight range this week but we could see some slight movement as the economic reports roll out. The most important report for investors will be the monthly jobs report on Friday morning. That report always has the potential to influence where mortgage rates go. Read on for more details.

Market Outlook 7.2.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?                                   

Rates inch lower to start holiday shortened week

Here we go with another week. U.S. financial markets are closed for July 4th on Wednesday, but we still have several economic reports out that could influence mortgage rates, including the monthly jobs report for June on Friday morning.

That report is always one of the biggest market moving pieces of economic data each month, and there’s no reason to believe that this time around will be different. Analysts are calling for an increase of 191,000 jobs to the U.S. economy.

That’s a solid reading that would likely put some upward pressure on mortgage rates. Typically, positive economic data signals to investors that they can take on more risk, pushing money out of bonds and into stocks.

Mortgage rates are largely tied to long-term government bond yields, such as the 10-year Treasury yield. When demand for these bonds lessens, yields rise and bring mortgage rates with them.

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Rate/Float Recommendation                              

Lock before rates rise             

What happens this week largely depends on the monthly jobs report on Friday. If the numbers come in as expected, it would signal to the Fed that the U.S. economy is strong enough to follow through with the two more rate increase projected for this year.

That would likely cause investors to move out of bonds and into stocks, bringing mortgage rates higher.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

PMI Manufacturing Index 

The PMI Manufacturing Index hit a 55.4 in June. That’s slightly above the level that analysts had predicted.

ISM Mfg Index 

The ISM Mfg Index came in at a 60.2 for June. That’s just above the mark that analysts had expected.

Construction Spending  

Construction spending for May rose by 0.4%, putting it at 4.5% year over year.

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Notable events this week:     

Monday:   

  • PMI Manufacturing Index
  • ISM Mfg Index
  • Construction Spending

Tuesday:   

  • Nothing

Wednesday:         

  • Markets Closed: July 4th

Thursday:     

  • ADP Employment Report
  • Jobless Claims
  • PMI Services Index
  • ISM Non-Mfg Index
  • FOMC Minutes
  • EIA Petroleum Status Report

Friday:          

  • Employment Situation
  • International Trade

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*Terms and conditions apply.

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Current Mortgage Rates Finish the Week Slightly Lower https://www.totalmortgage.com/blog/mortgage-rates/current-mortgage-rates-finish-the-week-slightly-lower/38281 https://www.totalmortgage.com/blog/mortgage-rates/current-mortgage-rates-finish-the-week-slightly-lower/38281#respond Sat, 30 Jun 2018 12:32:58 +0000 https://www.totalmortgage.com/blog/?p=38281 View Article]]> As anticipated, mortgage rates stayed in a fairly tight range this week. There was some action on Wednesday, but the markets recovered and mortgage rates moved into the weekend close to where they were on Monday. Read on for more details.

Where are mortgage rates going?                                

Rates finish a touch lower

At the start of the week, it seemed as though mortgage rates would remain in the narrow range that they’ve been in for the couple of months. That projection bore itself out as current mortgage rates are only a couple basis points below where they were on Monday.

We did get a significant reaction in the bond market on Wednesday, with the yield on the 10-year Treasury note having its biggest single day drop in a month.

Still, it was only a decline of 5.5 basis points, which underscores the notion that there hasn’t been many big swings as of late. Mortgage rates typically follow in the footsteps of the 10-year yield, which is why we saw rates move lower.

Also of note this week was the Freddie Mac Primary Mortgage Market Survey (PMMS). It showed that current mortgage rates moved lower for fourth time in the last five weeks. Here are the numbers:

  • The average rate on the 30-year fixed rate mortgage fell two basis points to 4.55% (0.5 points)
  • The average rate on the 15-year fixed rate mortgage remained flat at 4.04% (0.5)
  • The average rate on the 5-year adjustable rate mortgage rose four basis points to 3.87% (0.3)

Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:

“Mortgage rates declined over the past week and have now retreated in four of the past five weeks.

The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer. Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.

As highlighted in our June Forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand. Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply.”

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Rate/Float Recommendation              

Lock before rates rise           

Mortgage rates have remained in this close range for the past couple of months, and could stay here for a little while longer. However, the Federal Reserve is expected to raise the nation’s benchmark interest rates at least two more times this year, so it’s extremely likely that we will see mortgage rates finishing out the year at levels much higher than they are right now.

Given this expectation, we believe that the smart decision for most borrowers is to lock in a rate on a purchase or refinance sooner rather than later.

Learn what you can do to get the best interest rate possible.  

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Notable events this week:     

Monday:   

  • Chicago Fed National Activity Index
  • New Home Sales
  • Dallas Fed Mfg Survey

Tuesday:   

  • S&P Corelogic Case-Shiller HPI
  • Consumer Confidence
  • Richmond Fed Manufacturing Index
  • State Street Investor Confidence Index
  • Fedspeak

Wednesday:         

  • Durable Goods Orders
  • International Trade in Goods
  • Pending Home Sales Index
  • EIA Petroleum Status Report
  • Fedspeak

Thursday:     

  • GDP
  • Jobless Claims
  • Fedspeak

Friday:          

  • Personal Income and Outlays
  • Chicago PMI
  • Consumer Sentiment

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*Terms and conditions apply.

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Current Mortgage Rates for Monday, June 25, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-25-2018/38274 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-25-2018/38274#respond Mon, 25 Jun 2018 13:48:59 +0000 https://www.totalmortgage.com/blog/?p=38274 View Article]]> Mortgage rates have remained in a tight range for the past couple of months now, however, the scales are still tipped in favor of a push higher in the coming months.

It might not happen at the pace that analysts had projected at the beginning of the year, but with the Fed planning on raising the federal funds rate a couple more times this year, it’s reasonable to expect mortgage rates will rise. Read on for more details.

Market Outlook 6.25.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?                                

Rates avoiding a sustained rise for now

Mortgage rates have proved over the last few weeks just how difficult it can be to judge where the market will go. In the beginning of the year, we saw a sharp jump up in rates that seemed as though it would persist for the duration of the year.

Instead, we’ve seen rates hit several speed bumps that have slowed the climb. In the Freddie Mac Primary Mortgage Market Survey (PMMS), mortgage rates have now declined in three out of the last four weeks.

The average rate on a 30-year fixed rate mortgage moved down five basis points to 4.57% this week. We’re still fairly close to the highest reading of the year, which was 4.66% at the end of May.

Even though the push higher for rates has been somewhat tempered recently, the stage is still set for rates to finish out the year much higher than where they are now.

By all accounts, the Federal Reserve is still on track to raise the nation’s benchmark interest rate, the federal funds rate, at least two more times this year.

That would certainly put some upward pressure on mortgage rates, potentially bringing the average rate on the 30-year fixed rate mortgage up near 5.00%.

However, in the near-term we could remain in this narrow range that we’ve been in for the past couple of months for a while longer. The Fed isn’t expected to make any moves until September, so it’s up to other market and political events to move the needle in the interim.

Given the ongoing trade drama with China, it’s unclear when investors will feel comfortable enough to take on more risk and send money out of bonds and into stocks.

This affects mortgage rates because long-term government bonds, particularly the 10-year Treasury note, have a substantial impact on the direction of mortgage rates. Recently, the 10-year yield has moved lower, resulting in a slide for mortgage rates.

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Rate/Float Recommendation              

Lock before rates rise           

Mortgage rates have mad a little push lower recently, so right now is a great time to lock in a rate on a purchase or refinance. The longer you wait, the more likely it is that you’ll wind up getting a higher rate on your home loan.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

Chicago Fed National Activity Index

It’s a miss for the Chicago Fed National Activity Index which came in at a -0.15 for the month of May, compared to the 0.37 that analysts had expected. That brings the three month average down to a 0.18.

New Home Sales

  • 10am

Dallas Fed Mfg Survey

  • 10:30am

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Notable events this week:     

Monday:   

  • Chicago Fed National Activity Index
  • New Home Sales
  • Dallas Fed Mfg Survey

Tuesday:   

  • S&P Corelogic Case-Shiller HPI
  • Consumer Confidence
  • Richmond Fed Manufacturing Index
  • State Street Investor Confidence Index
  • Fedspeak

Wednesday:         

  • Durable Goods Orders
  • International Trade in Goods
  • Pending Home Sales Index
  • EIA Petroleum Status Report
  • Fedspeak

Thursday:     

  • GDP
  • Jobless Claims
  • Fedspeak

Friday:          

  • Personal Income and Outlays
  • Chicago PMI
  • Consumer Sentiment

[contentbox id=”3″]

*Terms and conditions apply.

]]>
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Current Mortgage Rates for Monday, June 18, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-18-2018/38268 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-18-2018/38268#respond Mon, 18 Jun 2018 14:01:54 +0000 https://www.totalmortgage.com/blog/?p=38268 View Article]]> 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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*Terms and conditions apply.

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Current Mortgage Rates for Monday, June 11, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-11-2018/38265 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-monday-june-11-2018/38265#respond Mon, 11 Jun 2018 15:53:09 +0000 https://www.totalmortgage.com/blog/?p=38265 View Article]]> Here we go with another week. The Federal Reserve announcement on Wednesday is the big even over the next few days so it’s important to keep an eye out for that. Overall, we think that mortgage rates will move slightly higher, so borrowers should take action soon. Read on for more details.

Where are mortgage rates going?                              

Fed Meeting in Focus

It’s a slow start to the week today with no significant economic data out of release. We will see the news-feed pick up as we move through the week, though, as the Federal Open Market Committee will convene for a two-day meeting starting on Tuesday.

The event will wrap up on Wednesday with a written statement at 2:00pm and a press conference with Fed Chair Jerome Powell at approximately 2:30pm.

Financial market participants are largely anticipating a quarter-point increase to the nation’s benchmark interest rate, the federal funds rate, bringing the target range up to 1.75%-2.00%.

Given this expectation, market participants have already priced in the change, so we aren’t expecting any major market reactions on Wednesday when the formal decision gets announced. In general, the Fed is projected to signal a calming message of gradual rate hikes.

It’s really a matter of what actually happens at this point. If the Fed comes out and does exactly what everyone thinks they will do, then we should get a fairly smooth day with rates making a little push higher, but no major swings.

However, all it takes is one word in the written statement or a slightly provocative remark from Fed Chair Powell during his Q & A to stir up some fuss in the markets.

If I had to bet on it, I would say that things will go as planned, but that certainly won’t stop me from tuning in to find out if there are any surprises.

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Rate/Float Recommendation            

Lock before rates rise        

Mortgage rates have been fairly flat over the past couple of weeks, but we do anticipate that they will finish out the year higher than where they are now. For this reason, we strongly recommend that anyone looking to purchase a new home or refinance their current mortgage does so sooner rather than later.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

  • Nothing

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Notable events this week:     

Monday:   

  • Nothing

Tuesday:   

  • FOMC Meeting Begins
  • NFIB Small Business Optimism Index
  • Consumer Price Index

Wednesday:         

  • PPI-FD
  • EIA Petroleum Status Report
  • FOMC Meeting Announcement

Thursday:     

  • Jobless Claims
  • Retail Sales Import and Export Prices
  • Business Inventories

Friday:          

  • Empire State Mfg Survey
  • Industrial Production
  • Consumer Sentiment

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*Terms and conditions apply.

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Current Mortgage Rates for Thursday, June 7, 2018 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-thursday-june-7-2018/38259 https://www.totalmortgage.com/blog/current-mortgage-rates/current-mortgage-rates-for-thursday-june-7-2018/38259#respond Thu, 07 Jun 2018 15:19:08 +0000 https://www.totalmortgage.com/blog/?p=38259 View Article]]> It’s been a good week for borrowers as mortgage rates have improved slightly thanks to easing political tensions in Italy. Rates are expected to rise over the coming weeks and months so if you’re looking to buy or refinance, you should do it soon. Read on for more details.

Where are mortgage rates going?                      

Mortgage fall in Freddie Mac PMMS

It’s good news for anyone looking to buy a home or refinance their current mortgage as mortgage rates fell for the second consecutive week in this week’s Freddie Mac Primary Mortgage Market Survey. This now puts the average rate on a 30-year fixed rate at a 7-week low. Here are the numbers:

  • The average rate on a 30-year fixed rate mortgage fell two basis points down to 4.54% (0.5 points)
  • The average rate on a 15-year fixed rate mortgage slid five basis points to 4.01% (0.4 points)
  • The average rate on a 5/1-year adjustable rate mortgage dropped six basis points to 3.74% (0.4 points)

Here is what the Economic and Housing Research Group at Freddie Mac had to say about rates this week:

“Mortgage rates dipped for the second consecutive week.

Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week.

Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.

While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.”

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Rate/Float Recommendation          

Lock before rates rise        

Mortgage rates are down to levels that haven’t been seen for almost two months. This is clearly great news for anyone who is about to buy a new home or refinance their current mortgage. However, mortgage rates are expected to tick back up in the coming weeks and months so you’ll want to take action soon to avoid the risk of locking in a higher rate.

Learn what you can do to get the best interest rate possible.  

Today’s economic data:         

Jobless Claims

Applications filed for U.S. unemployment benefits fell 1,000 from the prior week putting them at 222,000.

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Notable events this week:     

Monday:   

  • Factory Orders

Tuesday:   

  • PMI Services Index
  • ISM Non-Mfg Index
  • JOLTS

Wednesday:         

  • International Trade
  • Productivity and Costs
  • EIA Petroleum Status Report

Thursday:     

  • Jobless Claims

Friday:          

  • Wholesale Trade

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*Terms and conditions apply.

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