Current Mortgage Rates for Wednesday, July 26, 2017
Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice. Don’t feel like reading? Check out our market outlook series.
Where are mortgage rates going?
Fed statement looms over markets
The big event of the day is of course the conclusion of the FOMC meeting this afternoon. That two-day meeting will wrap up at 2:00pm (EST) with a written statement. Financial market participants will be closely watching to see what kind of adjustments have been made to the Fed language on inflation, as well as for any clues about when the Fed will begin to unwind their balance sheet.
We saw yesterday that investors moved out of bonds and into stocks, pushing up Treasury yields. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) finished the day about seven basis points higher. That’s the biggest one day spike in several weeks. Today, investors aren’t making many moves as they wait to hear from the Fed.
It’s very likely, however, that we will see some action once the Fed’s statement is released. Which way things will swing all depends on what kind of statement we get from the Fed. If they come out very dovish and talk about concern over inflation and the need for a cautious approach, we could see investors retreat out of stocks and more into bonds.
On the other hand, if they take a confident, optimistic approach and give any clear details about the timing of the shrinking of the balance sheet, Treasury yields could continue to rise. Mortgage rates tend to move in the same direction as the 10-year yield, so keep an eye on where that goes after 2:00pm.
What does this mean for me?
Pay attention to market changes
If you’ve been on the fence about a purchase or refinance, right now is still a great time to do it. Mortgage rates are continuing to remain on the lower end of the spectrum for 2017, providing many borrowers with the opportunity to lock a very accommodating rate.
Just make sure you keep an eye out for any changes after the FOMC decision at 2:00pm.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. Or, if you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
New Home Sales
New home sales for June came in at an annualized rate of 610,000. That’s 5,000 above the prior revised reading.
EIA Petroleum Status Report
- Crude oil: -7.2 M barrels
- Gasoline: -1.0 M barrels
- Distillates: -1.9 M barrels
FOMC Meeting Ends
The FOMC meeting wraps up this afternoon with a written statement at 2pm.
Notable events this week:
- PMI Composite Flash
- Existing Home Sales
- FOMC Meeting Begins
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- New Home Sales
- EIA Petroleum Status Report
- FOMC Meeting Ends
- Durable Goods Orders
- International Trade in Goods
- Jobless Claims
- Consumer Sentiment
Source: Total Mortgage Underwritings Blog