The Freddie Mac Primary Mortgage Market Survey this week is showing mortgage rates moving lower for the first time in 2018. With rates on the decline (for now) we strongly recommend that anyone looking to purchase a home or refinance their current mortgage takes action soon. Read on for more details.
Where are mortgage rates going?
Rates fall in Freddie Mac PMMS
It’s Thursday after 10:00am, so that means that the Freddie Mac Primary Mortgage Market Survey got released. We’ve got a notable report out this week, with mortgage rates falling for the first time in 2018. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell two basis points to 4.44% (0.5 points)
- The average rate on a 15-year fixed rate mortgage fell four basis points to 3.90% (0.5 points)
- The average rate on a 5-year adjustable rate mortgage increased four basis points (0.4 points)
Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:
“Tuesday’s Consumer Price Index report indicated inflation may be cooling down; headline consumer price inflation was 2.2 percent year-over-year in February. Following this news, the 10-year Treasury fell slightly. Mortgage rates followed Treasurys and ended a nine-week surge. The U.S. weekly average 30-year fixed mortgage rate fell 2 basis points to 4.44 percent in this week’s survey, its first decline this year.”
It’s always important to note that data for the survey was collected early on in the week and therefore doesn’t necessarily reflect current market conditions.
The downward trend has not reversed itself quite yet, though, and has actually continued throughout the week. Yesterday’s soft Producer Prices and Retail Sales readings certainly played a part in keeping rates lower.
If we take a look at the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, we can see that it’s down to 2.81% right now.
That’s nine basis points below is highest position of the week on Monday. Mortgage rates typically move in the same direction as the 10-year yield, so rates are even lower right now than in the PMMS.
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Rate/Float Recommendation
Lock now before rates push higher
Mortgage rates are on track to finish out the week lower for the first time in 2018. This is obviously great news for anyone looking to buy a home or refinance their current mortgage.
We strongly recommend that you take action now while rates are low because the long-term trend remains for rates to move considerably higher; many analysts are still calling for the 30-year fixed rate to move above 5% sometime this year.
It really only takes a few minutes online or a quick phone call to one of our experienced mortgage professionals to get started.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Jobless Claims
Applications for U.S. unemployment benefits came in at 226,000 for the week of 3/10/18. That puts the 4-week moving average at 221,500. This is a drop of 4,000 for new claims, which points toward strength in the labor market.
Philadelphia Fed
The Philly Fed’s general business conditions index hit a 22.3 in March. That’s below the prior reading but the details of the report are incredibly strong, with new orders and unfilled orders coming in hot.
Empire State Mfg Survey
The Empire State General Business Conditions Index also posted a strong reading this morning, coming in at 22.5. That’s well above the 15.0 that analysts had expected.
Import and Export Prices
Import prices ticked up 0.4% from the previous month in February, putting them at 3.5%, year over year. Export prices rose 0.2%, month over month, bringing the year over year change to 3.3%.
Housing Market Index
The Housing Market Index for March hit a 70. That’s still a positive reading but it is a little below the 72 that analysts had expected.
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Notable events this week:
Monday:
- 10-Yr Note Auction
Tuesday:
- NFIB Small Business Optimism Index
- Consumer Price Index
Wednesday:
- PPI-FD
- Retail Sales
- Business Inventories
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Philadelphia Fed
- Empire State Mfg Survey
- Import and Export Prices
- Housing Market Index
Friday:
- Housing Starts
- Industrial Production
- Consumer Sentiment
- JOLTS
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from Total Mortgage Blog http://ift.tt/2GwuiFE
via Zero Mortgage Insurance
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