Mortgage rates are holding steady for the most part as we approach the midpoint of the week. They are, however, still down by a few basis points on the week, due to the big drop on Monday.
There is still a lot of uncertainty in the market, so it’s important to keep an eye on any developments that could impact the direction of rates. Read on for more details.
Where are mortgage rates going?
Treasury yields move back down today
Volatility has been king this week. Monday, of course, was the craziest day so far with the Dow falling by the most points in a single day in the history of the index. There was a lot of anxiety going into yesterday’s trading session as no one knew if the free-fall would continue.
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Somewhat surprisingly, the market held mostly steady, with Treasury yields moving up several basis points.
Right now, however, the yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) is down a little over two basis points to 2.78%.
That’s ten basis points below the high of the week that was briefly touched in early trading on Monday. Mortgage rates tend to follow in the footsteps of the 10-year yield, so rates are currently lower on the week.
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There’s really no significant economic data out today, but we will get a a 10-year note auction this afternoon. Depending on what type of demand is displayed, we could see yields and mortgage rates adjust following that event.
Tomorrow we will get the Freddie Mac Primary Mortgage Market Survey (PMMS). That gets released every Thursday at 10am sharp and is the most comprehensive weekly survey of where mortgage rates are headed.
Rates have gone up for four consecutive weeks now, but the way things are going it seems as though that streak will end tomorrow. It will certainly be interesting to see how much the week’s volatility has affected the overall trajectory of mortgage rates.
Federal Reserve this Week
Other than that, we’ve got a handful of speaking engagements from Fed officials today. Already this morning we’ve heard from Dallas Fed President Robert Kaplan.
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Speaking to an audience in Frankfurt, he walked back the expectations in the market for a rise in inflation after the strong average hourly earnings numbers in last Friday’s monthly jobs report for January.
Kaplan stated that, “We’re facing wage pressures right now in the United States because of a tight labor market. I am less convinced that this will necessarily translate into higher prices because businesses have much less pricing power.”
Rate/Float Recommendation
Lock now while rates are down on the week
Current mortgage rates remain at levels that are lower than where they started the week. This creates a great opportunity for anyone looking to purchase a home or refinance their current mortgage rate to take action toward a great home financing deal.
Find out how to get the best rate possible with our in-depth video series.
You can get started with a free rate quote online in just a few minutes. If you’d rather talk to a mortgage specialist, you can give us a call and we can go through the rate process over the phone.
Today’s economic data:
Fedspeak
- Dallas Fed President Robert Kaplan at 6:00am
- New York Fed President William Dudley at 8:30am
- Chicago Fed President Charles Evans at 11:15am
- San Francisco Fed President at 5:20pm
EIA Petroleum Status Report
10-Yr Note Auction
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Notable events this week:
Monday:
- PMI Services Index
- ISM Non-Mfg Index
Tuesday:
- International Trade
- Fedspeak
- JOLTS
Wednesday:
- Fedspeak
- EIA Petroleum Status Report
- 10-Yr Note Auction
Thursday:
- Fedspeak
- Jobless Claims
Friday:
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Source: totalmortgage.com