Mortgage rates are on track to finish out the short trading week (markets closed for Good Friday). This is great news for anyone looking to buy a home or refinance they current mortgage. It only takes a few minutes online or a quick phone call to get started. Read on for more details.
Where are mortgage rates going?
Mortgage rates remain low on the week
It’s been one of those weeks in the market where you take a minute and ponder how futile it can be to project where mortgage rates will move.
With last week’s Fed outlook propping up the U.S. economy and signaling to investors that maybe they will raise rates at a faster pace than expected, a reasonable thought would be that stocks will rise this week, pushing mortgage rates higher.
But alas, that did not unfold. Instead, we’ve gotten a retreat from stocks into the perceived safety of government bonds, putting downward pressure on mortgage rates. Tech stocks have been the main target for losses this week due to a variety of reasons.
Here are the numbers from the Freddie Mac Primary Mortgage Market Survey (PMMS):
- The average rate on a 30-year fixed rate mortgage moved down one basis point to 4.44% (0.5 points)
- The average rate on a 15-year fixed rate mortgage ticked down one basis point to 3.90% (0.5 points)
- The average rate on a 5/1 year adjustable rate mortgage went down two basis points to 3.66% (0.4 points)
Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:
“Treasury yields fell from a week ago helping to drive mortgage rates modestly lower. The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasurys, mortgage rates fell slightly. The U.S. weekly average 30-year fixed mortgage rate fell 1 basis point to 4.44 percent in this week’s survey.”
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Rate/Float Recommendation
Lock now while rates are down
Mortgage rates seem as though they could stay within a relatively narrow range for an extended amount of time now, but long-term we believe that they will rise considerably.
This means that the longer you hold out on locking your rate, the greater the chance that you will end up paying more on a purchase or refinance. So if you’re considering buying a new home or refinancing your current mortgage, our recommendation is to lock in sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Jobless Claims
Jobless claims for the week of 3/24/18 came in at 215,000. That’s down from the prior week’s level of 229,000. The 4-week moving average is now at 224,500.
Personal Income and Outlays
Personal income increased 0.4% in February. Consumer spending ticked up 0.2%. The PCE Price Index rose 0.2%, putting it at 1.8% year over year. The Core PCE Price Index went up 0.2%, month over month, bringing it to 1.6% year over year.
Chicago PMI
Chicago PMI hit a 57.4 in March. That’s unexpectedly lower than both the prior reading of 61.9 and the consensus for 62.8.
Consumer Sentiment
Consumer sentiment in March came in at 101.4. That’s slightly below the mark of 102.0 that analysts had projected.
Fedspeak
Philadelphia Fed President Patrick Harker at 1:00pm.
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Notable events this week:
Monday:
- Chicago Fed National Activity Index
- Dallas Fed Mfg Survey
- Fedspeak
Tuesday:
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- Richmond Fed Manufacturing Index
- Fedspeak
Wednesday:
- GDP
- International Trade in Goods
- Pending Home Sales Index
- EIA Petroleum Status Report
- Fedspeak
Thursday:
- Jobless Claims
- Personal Income and Outlays
- Chicago PMI
- Consumer Sentiment
- Fedspeak
Friday:
- Markets Closed for Good Friday
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via Zero Mortgage Insurance
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