Mortgage rates haven’t move around a lot this week. In fact, we saw the average rate on a 30-year fixed rate moved a little lower in today’s Freddie Mac Primary Mortgage Market Survey. If you’re considering buying or refinancing, right now could be a great time to lock in a rate. Read on for more details.
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Market Outlook 4.30.17 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates continue to hold steady
The trend so far this week has been for mortgage rates to remain in a tight range.
There haven’t been any major news events to really rattle the markets into readjusting their positions.
The Federal Open Market Committee meeting ended yesterday without much commotion, to much surprise to no one.
The nation’s benchmark interest rate–the federal funds rate–was kept unchanged at a target range of 1.5% to 1.75%.
FOMC members did note that inflation is moving closer to their target of 2.0%, as well as some overall improvements to the economy, but that was hardly enough of a change to their written statement to cause a market reaction.
Rates slide in Freddie Mac Primary Mortgage Market Survey
Some good news for anyone looking to buy or refinance right now is that mortgage rates moved lower in the Freddie Mac PMMS this week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell by three basis points to 4.55% (0.5 points)
- The average rate on a 15-year fixed rate mortgage inched up one basis point to 4.03% (0.4 points)
- The average rate on a 5/1-year adjustable rate mortgage fell five basis points to 3.69% (0.3 points)
Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:
“After steadily rising in most of April, average mortgage rates dipped slightly over the past week.
The 30-year fixed mortgage rate declined three basis points to 4.55 percent in this week’s survey. While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring. The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.
It’s also good news that first-time buyers appear to be having more success so far this year – despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Rate/Float Recommendation
Lock now before rates rise
Mortgage rates still look like they could make another decent move higher over the coming months. If you want to avoid the risk of locking in a higher rate, we recommend that you take action sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
International Trade
The nation’s trade deficit narrowed sharply in March to $49.0 billion. The decline was largely anticipated by analysts.
Jobless Claims
Applications filed for unemployment benefits for the week of 4/28/18 moved up 2,000 to 211,000. That puts the four-week moving average at 221,500.
Productivity and Costs
Nonfarm productivity increased by 0.7% in the first quarter. Unit labor costs rose 2.7%.
PMI Services Index
The PMI services index hit a 54.6 for April.
Factory Orders
Factory orders ticked up 1.6% in March.
ISM Non-Mfg Index
The composite index came in at 56.8 for April.
Notable events this week:
Monday:
- Personal Income and Outlays
- Chicago PMI
- Pending Home Sales Index
- Dallas Fed Mfg Survey
Tuesday:
- FOMC Meeting Begins
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
Wednesday:
- ADP Employment Report
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- International Trade
- Jobless Claims
- Productivity and Costs
- PMI Services Index
- Factory Orders
- ISM Non-Mfg Index
Friday:
- Employment Situation
- Fedspeak
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Source: totalmortgage.com