Here we go with another week. Mortgage rates are dealing with some moderate upward pressure as we march onward into another five days of market action. There’s not a lot on the economic calendar, though, so it’s possible we don’t see that much movement for mortgage rates. Read on for more details.
Where are mortgage rates going?
Mortgage rates increase to start the week
Financial market participants are moving into stock this morning pushing money out of the bond market, causing Treasury yields to rise.
The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, is up almost five basis points to 2.91%. Mortgage rates typically move in the same direction as the 10-year yield so rates are heading higher to kick off the week.
The markets are still digesting the strong monthly jobs report for May. That report showed that 223,000 jobs were added to the U.S. economy. That number is slightly higher than the 200,000 that analysts had projected.
Given the strong headline reading, the general sentiment among financial market participants is that the Federal Reserve will follow through with their plan to raise the nation’s benchmark interest rate, the federal funds rate, at least two more times in 2018.
The week following a monthly jobs report is historically a slow one for economic data so the focus shifts more towards political news to steer investors. If the political theater fails to entertain, then it could be a boring week for mortgage rates.
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Rate/Float Recommendation
Lock before rates rise
Mortgage rates did fall last week but they’re back on the rise today. Friday’s monthly jobs report seemed to solidify at least two more rate increases from the Federal Reserve this year, which will put some upward pressure on mortgage rates.
To avoid the risk of locking in a higher rate, our recommendation for anyone looking to purchase a home or refinance their mortgage is 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:
Factory Orders
Factory orders fell 0.8% in April.
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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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from Total Mortgage Blog https://ift.tt/2LUu518
via Naza Finance Blog
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