Where are mortgage rates going?
Oil prices have taken a plunge this morning and are currently trading under $30 a barrel. The last time oil dipped under $30 a barrel was December 2003. It’s madness. Some are saying it will hit $10 a barrel before it bounces back up. Today’s turmoil (there’s a terrible pun in there) stems from concern over the possibility of Iranian oil joining the already saturated market.
What does this mean for me?
Mortgage rates are back down to pre-Fed rate hike levels. Heading into a holiday weekend on a low note is never a good thing, but it does give borrowers a chance to pause and reflect on the current situation. It seems like rates are going to float around where they are (maybe even dropping a little lower?) for at least another week. It’s hard to look too far out right now. All I can say is that right now is a good time to lock in a low rate on your refinance or mortgage.
Our Current Mortgage Rates:
|30-Year Fixed Rate||15-Year Fixed Rate||5-Year ARM|
|Fees & Points||2.0||2.0||2.0|
Today’s Economic Data:
Producer Price Index – Final Demand fell 0.2% in December
After a 0.3% rise in November, the PPI-FD dropped 0.2% in December. Year-over-year, the index is down 1%.
Empire State Manufacturing Index at -19.37
Manufacturing woes continue in the New York region, with the Empire State Index coming in at its lowest level since April 2009. New orders (-23.54) have now contracted for eight consecutive months, and unfilled orders (-11.00) have contracted for six consecutive months.
Industrial Production down 0.4% in December
Manufacturing is the main component of this report so it’s not surprising that industrial production didn’t have post positive results in December.
Consumer Sentiment at 93.3
The consumer sentiment index rose 0.07 from the last reading in December to 93.3. It’s not all positive, though, as the current conditions component dropped 3.0 points to 105.1.
10-Year Treasury Note ticks down
The yield on the 10-year Treasury note is currently trading around 2.02 percent, which down from Wednesday’s close of 2.09 percent. Mortgage rates usually trail behind the 10-year yield.
This week’s economic data that could impact mortgage rates:
- Treasury auctions
- Job Openings and Labor Turnover Survey
- Treasury auctions
- MBA Mortgage Applications
- Fed Beige Book
- 10-year Treasury auction
- Weekly Jobless Claims
- Import and Export Prices
- Treasury auction
- Producer Price Index – Final Demand
- Empire State Manufacturing Index
- Industrial Production
- Consumer Sentiment