We’re looking at more movement in the bond market today, which is certainly putting some upward pressure on mortgage rates. This is a trend that we think will continue over the coming weeks and months. So if you’re looking to buy or refinance, you might want to consider taking action soon. Read on for more details.
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Market Outlook 1.8.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Bond sell-off continues
First Japan, now China. The big news this week has been the international news surrounding the bond market. We saw the Bank of Japan announce yesterday that they are reducing their bond buying program.
Click here to get today’s latest mortgage rates (Jul. 25, 2023).
Now, we have China reportedly looking to follow suit and cut back on their U.S. Treasury holdings. All of this has had a marked effect on the 10-year Treasury yield, which is the best market indicator of where mortgage rates are going.
We’ve seen that yield move about twelve basis points higher this week, pushing it up past the significant milestone of 2.50%. In fact, right now it’s all the way up to 2.58%. This is the highest it’s been since last March.
Mortgage rates tend to move in the same direction as the 10-year yield, so we’ve seen rates move higher this week. This is something that we’ve been anticipating would happen for a while, but not quite for the reasons we’re seeing now.
The way the market has been trending, it seems reasonable to expect that current mortgage rates will continue to rise.
Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are poised to rise throughout 2018, so the sooner you lock, the more likely it is you’ll get a better deal on a purchase or refinance.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Import and Export Prices
Import prices rose by 0.1% in December, putting them at 3.0% year over year. Export prices ticked down by 0.1%, bringing them to 2.6% year over year.
Fedspeak
- Chicago Fed President Charles Evans at 9:00am
- Dallas Fed President Robert Kaplan at 9:10am
- St. Louis Fed President James Bullard at 1:30pm
EIA Petroleum Status
- Crude oil: -4.9 M barrels
- Gasoline: 4.1 M barrels
- Distillates: 4.3 M barrels
10-Yr Note Auction
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Notable events this week:
Monday:
Tuesday:
- Fedspeak
- JOLTS
Wednesday:
- Import and Export Prices
- Fedspeak
- EIA Petroleum Status
- 10-Yr Note Auction
Thursday:
- Jobless Claims
- PPI-FD
Friday:
- Consumer Price Index
- Retail Sales
- Business Inventories
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Source: totalmortgage.com