The end of the week is finally here and with it is some great news for borrowers. Some key inflation data that came out this morning just didn’t match up with expectations, causing investors to move more into bonds, pushing yields, and subsequently mortgage rates, lower as we head into the weekend. Read on for more details.
Where are mortgage rates going?
Inflation data disappoints again – rates move lower
The biggest data dump of the week took place this morning and it’s another disappointment for inflation data. Consumer prices for September failed to reach analysts’ expectations, with the core rate missing the mark by one tenth of a point.
Click here to get today’s latest mortgage rates (Oct. 13, 2017).
A week ago market speculators were buzzing about the uptick in wage earnings, but today’s inflation data will temper that excitement. It’s unlikely to make a major dent in the Fed’s decision to raise rates in December, but it’s definitely fueling the fire.
Immediately after the data broke treasury yields fell with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) dropping by three basis points, pushing it down to 2.28%. That brings it under the significant psychological threshold of 2.30% for the first time in over two weeks.
Get the GreenLight and close in 21 days*
The 10-year yield started the week up around 2.36%. Typically, mortgage rates move in the same direction as the 10-year yield, so rates have improved this week. If the present trend holds into next week we could see rates drop in the Freddie Mac Primary Mortgage Market Survey next week.
What does this mean for me?
Great time to lock in a rate
Mortgage rates are moving lower as we head into the weekend. This is great news for anyone who is currently looking to purchase a home or refinance their mortgage.
The downturn is predicted to be a temporary one with rates expected to rise in the long-term, so we recommend you take action now while you have the sure thing. It only takes a couple minutes with our Mortgage Builder to get started.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Consumer Price Index
Consumer prices for September came in a little softer than expected with a 0.6% monthly change, putting the year over year reading at 2.2%. CPI less food and energy also came in one tenth below what was expected at just 0.1% month over month, keeping it at 1.7% year over year.
Retail Sales
Retail sales jumped up 1.6% in September. Retail sales less autos had a 1.0% gain, while retail sales less autos and gas moved up 0.5%.
Fedspeak
- Boston Fed President Eric Rosengren at 8:30am
- Chicago Fed President Charles Evans at 10:25am
- Dallas Fed President Robert Kaplan at 11:30am
- Fed Governor Jerome Powell at 1:00pm
Business Inventories
Business inventories for August came came in exactly in line with expectations today with a gain of 0.7%.
Consumer Sentiment
Consumer sentiment came in strong for October at 101.1. That’s up a bit from the prior reading of 95.1.
Notable events this week:
Monday:
- Nothing – Bond Market Closed for Columbus Day
Tuesday:
- Fedspeak
Wednesday:
- Fedspeak
- JOLTS
- FOMC Minutes
Thursday:
- Jobless Claims
- PPI-FD
- EIA Petroleum Status Report
- Fedspeak
Friday:
- Consumer Price Index
- Retail Sales
- Fedspeak
- Business Inventories
- Consumer Sentiment
from Total Mortgage Blog http://ift.tt/2xDeZEL
via Naza Finance Blog
No comments:
Post a Comment