Current Mortgage Rates for Wednesday, May 16, 2018

Mortgage rates are experiencing some upward pressure this week thanks to some positive economic reports.

We’ve been projecting this trend all year, and anticipate that it will continue throughout the rest of 2018.

That’s why we recommend anyone looking to buy or refinance to lock in a rate soon. Read on for more details.

Market Outlook 5.14.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?   

Treasury yields continue to hold near 7-year high

After an uneventful couple of week we’re finally seeing some notable market adjustments. Yesterday, long-term government bonds had one of their biggest daily sell-offs of the year, pushing yields higher.

The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, jumped all the way up to 3.06%. Today, it’s climbed up a couple basis points higher to just under 3.09%.

That’s the highest reading in nearly seven years. Mortgage rates typically move in the same direction as the 10-year yield, so we’re seeing some upward pressure on rates this week.

The impetus for the surge higher was some positive readings in the retail sales report, followed by more healthy readings out of the manufacturing sector. We have made it past the most significant economic reports of the week, making it likely that rates will hold at these levels until next week.

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Rate/Float Recommendation   

Lock before rates move even higher    

Mortgage rates have jumped higher. That’s something we’ve been warning about for quite some time.

Given that rates are expected to continue their gradual ascent throughout 2018, it makes sense for anyone looking to purchase a new home or refinance their current mortgage to take action sooner rather than later.

The longer you wait, the more likely it is that you’ll get a higher rate when you finally lock.

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

Today’s economic data:               

Housing Starts  

Housing starts for April came in at an annualized rate of 1.287 M. Permits came in at an annualized rate of 1.352.

Fedspeak  

• Atlanta Fed President Raphael Bostic at 8:30am
• St. Louis Fed President James Bullard at 6:30pm

Industrial Production 

The industrial production report for April got released this morning and it showed that production is up 0.7%, manufacturing is up 0.5%, and the capacity utilization rate is at 78.0%.

Atlanta Fed Business Inflation Expectations

The business inflation expectation fell back three tenths in May to 2.0%.

EIA Petroleum Status Report

For the week of 5/16/18:

• Crude oil: -2.2 M barrels
• Gasoline: -2.2 M barrels
• Distillates: -3.8 M barrels

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Notable events this week:  

Monday:  

• Fedspeak

Tuesday:   

• Retail Sales
• Empire State Mfg Survey
• Business Inventories
• Housing Market Index

Wednesday:        

• Housing Starts
• Fedspeak
• Industrial Production
• Atlanta Fed Business Inflation Expectations
• EIA Petroleum Status Report

Thursday:     

• Jobless Claims
• Philadelphia Fed Business Outlook Survey
• Bloomberg Consumer Comfort Index
• Fedspeak

Friday:          

• Fedspeak

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