The markets are back in business in the United States and we’re seeing a mixed start for stocks and bonds. It’s a very light day for economic data, a theme that continues for most of the week, but we are seeing some upward pressure on Treasury yields and subsequently, mortgage rates. Read on for more details.
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Market Outlook 2.19.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates move up a little on Tuesday
Financial market participants have returned to the workplace after the day off yesterday. It’s a bit of a mix right now with stocks mostly lower and Treasury yields up slightly. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is back up at 2.90%.
Click here to get today’s latest mortgage rates (Jul. 11, 2023).
We’ve seen it hit that mark during several trading sessions over the past week or so, but it hasn’t been able to hold above that position for any sustained period of time.
There was a lot of talk last week about the 10-year yield surging above 3.00%–which is definitely a significant psychological threshold for investors. At the moment, there doesn’t seem to be any clear threat of that happening, given that it’s a very light week for economic data, but it’s something to keep in mind for the near future.
We’re dealing with a complete lack of economic data out today, but there are a several bond auctions. Looking ahead to tomorrow, the focus will be on the FOMC minutes from their meeting a few weeks ago.
Rate/Float Recommendation
Lock in a rate soon
Mortgage rates are up a little today, but nothing major. The long-term trend does remain, however, for them to rise considerably from present levels. Many analysts are still calling for rates to hit 5% at some point this year.
Learn what you can do to get the best interest rate possible.
With the average rate on the 30-year fixed rate hitting 4.38% in last week’s Freddie Mac Primary Mortgage Market Survey, rates are pretty low compared to where they could go later this year. Everyone’s situation is different, but there is a clear risk to floating a rate down the line. That’s why our recommendation to borrowers is to try and lock in a rate as soon as possible.
Today’s economic data:
-
Nothing
- Sorry, folks–nothing to see here today.
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Notable events this week:
Monday:
- Markets Closed: President’s Day
Tuesday:
Wednesday:
- Fedspeak
- PMI Composite Flash
- Existing Home Sales
- FOMC Minutes
Thursday:
- Jobless Claims
- Fedspeak
- EIA Petroleum Status Report
Friday:
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Source: totalmortgage.com