Mortgage Interest Rates May 1 2017

Mortgage interest rates for May 1, 2017 were flat to a slightly worse for some lenders as the Mortgage Backed Securities (MBS) market followed the 10y yield higher.  The selloff was nothing significant and it’s possible it may reverse course in afternoon trading.  Earlier this morning we received some economic data such as; PCE price index, Core PCE price index, Consumption, ISM manufacturing, and construction spending.  The big news of the day is the ISM manufacturing index which was a weaker than expected as it appears inflation fears under the current administration are starting to fade as the inflation data starts to turn in a downward direction (still to early to tell). Core PCE price index came in at -0.1 and the Mortgage Interest Ratesprevious month it came in at 2.0 (so a bit of a move down with the price index).

The best low mortgage rates for 2017 are still near the current year lows so nothing to be too concerned about as mortgage interest rates for May 1, 2017 remain flat and for a few lenders a bit worse.  Fixed rate mortgages and adjustable rate mortgages may see some movements this week as the ADP Employment number comes out later in the week and that is followed up by the FOMC rate decision on Wednesday and on Friday we have the BLS jobs report.  The most watched aspect of the BLS jobs report will probably be are the earnings component and to a certain degree the hours worked as well.  If those numbers are stronger than expected; then it’s most likely to lead to a selloff in the bond market (stronger numbers means the possibility of higher inflation which is bad for bonds.)  If the numbers are weaker than expected we may see mortgage interest rates move below the levels from May 1, 2017.  Keep in mind all lenders are different and their current loan volume may have more influence on the rates they issue than economic data.