Some positive economic data this morning is creating some upward momentum for current mortgage rates. The day is young, though, and we still have several economic reports to deal with that could cause rates to adjust.
However, the long term trend remains for rates to rise, which means borrowers will likely get a better deal on a purchase or refinance by taking action now. Read on for more details.
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Market Outlook 1.16.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates up a little
Mortgage rates are moving a little higher this morning as investors get ready for some economic data to come out.
Click here to get today’s latest mortgage rates (Jul. 28, 2023).
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is up about two and a half basis points from where it started the day.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are trending higher right now.
It’s not unbearable upward pressure but the momentum is definitely there. We did already get the Industrial Production report, which showed that production increased by 0.9% in December–much higher than the 0.4% that analysts had expected.
This is certainly helping to carry the upward push for current mortgage rates and Treasury yields. Later on this afternoon we will get the Fed’s Beige Book, which has anecdotal evidence from the various Fed regions about how the U.S. economy is performing.
Rate/Float Recommendation
Lock now while rates are low
Mortgage rates are moving a littler higher this morning. There is still plenty of time left in the day, however, so we could still see them move around some more before the day is over.
The long term trend continues to be for rates to move higher, so we’re still recommending that borrowers take action on a purchase or refinance sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Industrial Production
Industrial Production rose 0.9% in December. Manufacturing increased by 0.1%. The capacity utilization rate is now at 77.9%.
Housing Market Index
Beige Book
Fedspeak
- Chicago Fed President Charles Evans at 3:00pm
- Dallas Fed President Robert Kaplan at 3:15pm
- Cleveland Fed President Loretta Mester at 4:30pm
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
- Nothing: Markets Closed for Martin Luther King Jr. Day
Tuesday:
- Empire State Mfg Survey
Wednesday:
- Industrial Production
- Housing Market Index
- Beige Book
- Fedspeak
Thursday:
- Housing Starts
- Jobless Claims
- Philadelphia Fed Business Outlook Survey
- EIA Petroleum Status Report
Friday:
- Consumer Sentiment
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Source: totalmortgage.com