The government is back in business and mortgage rates are moving a littler lower today. We’re about to get three straight days with important economic reports out, though, which could put some upward pressure on rates. If you’re considering locking in a rate on a purchase or refinance, we think you should take advantage of today’s low rates and act now. Read on for more details.
Market Outlook 1.22.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates move lower
President Trump signed a bill yesterday which put temporary funding into effect for the government through February 8th.
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We saw all of the major U.S. stock indexes bump higher after the news broke around midday, but the decision didn’t have much of an immediate effect on the bond and mortgage markets.
However, today we’re seeing Treasury yields move lower, with the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) down about 2.5 basis points.
Mortgage rates typically move in the same direction as the 10-year yield, so we’re looking at some downward pressure on rates today.
Looking ahead to the rest of the week, we have several economic reports out every day that could influence the direction of rates.
The two most notable events, however, are the Durable Goods report and the first estimate for fourth quarter GDP, both scheduled to be released early Friday morning.
If we get some strong readings in those reports, we could definitely see mortgage rates move higher as we head into the weekend.
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Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are still at very low levels on a historical perspective. However, current mortgage rates are expected to rise over the long-term, so we do firmly believe that it’s in the best interest for most borrowers to lock in a rate sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Richmond Fed Manufacturing Index
The Richmond Fed Manufacturing Index hit a 14 for January. That’s outside of the lower end of the consensus range.
Fedspeak
Chicago Fed President Charles Evans will speak at 6:30pm.
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- Richmond Fed Manufacturing Index
- Fedspeak
Wednesday:
- FHFA House Price Index
- PMI Composite Flash
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- International Trade in Goods
- Jobless Claims
- New Home Sales
- Kansas City Fed Manufacturing Index
Friday:
- Durable Goods Orders
- GDP
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from Total Mortgage Blog http://ift.tt/2E1PBNL
via Naza Finance Blog
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