Mortgage Rates For June 7, 2017

For mortgage rates, Wednesday and Thursday are all about politics.  Domestic and International politics take center stage over the next 48 hours.  Starting off this morning mortgage rates for June 7, 2017 should be flat compared to yesterday but with the potential of major news coming out in the next 48 hours it may be anything but flat heading into the weekend.  Before we get to that lets look at the economic readings for today.  The MBA purchase index came in stronger than expected this morning along with the MBA refinance index.  It appears mortgage volume is picking up as mortgage rates their 2017 lows.

mortgage interest rateThe 10y yield started off the morning around 2.16% however since the open it has fallen back to the 2.14% level.  As mortgage rates moved down the question “How soon can I refinance my mortgage?” arises for people who bought homes over the last 6 months.  If you don’t have a pre-payment penalty (and most mortgages don’t) and you’ve completed your first payment you should be go to go (double check your loan docs to verify there are no restrictions).  The completed first payment is not even a “requirement” however for logistical reasons for ordering a pay off demand it’s always a good idea to at least wait until you’ve made your first payment.  That being said rates are not that much lower compared to last month; but they’re about .50% lower compared to December/January/February/March so if you bought your home then it might be worth taking a look at getting a lower rate.

On to politics! On Thursday we’ll have to important things that may influence mortgage rates; the UK snap elections and the Comey testimony in front of the Senate. The two candidates, Prime Minister Theresa May and Labour leader Jeremy Corbyn.  May is the expected winner however Corbyn is close enough in the polls that he might pull off an upset victory.  The other important event is the Comey testimony.  Why is this important?  If anything comes out that the current Administration obstructed the FBI investigation into possible Trump-Russia ties than that would mean significant problems for the administration over the coming months.  Bonds most likely will rally on the news as gridlock on the budget, health care and tax reform come to halt.  Another issue is the actual investigation; if details comes out that there is evidence of a Trump-Russia connection this could also send bond yield lowers.

As always we’ll keep an eye on things and if you have any questions or would like a quote please contact us directly at 1-800-550-5538.