Mortgage Rates June 12, 2017

Friday morning of last week the 10y yield hit the 2.22 level before moving back down to below 2.20.  This morning we’re seeing the 10y yield back at the 2.22 level as we start “Fed Watch”.  Mortgage rates are starting off at the same levels from Friday.  As I’ve stated before the 10y does not set mortgage rates and that sometimes they move in opposite directions however this week it’s a good idea to keep a mortgage interest rateclose on eye on the 10y yield as we get closer to the Fed rate hike announcement.  Everyone is expecting the Fed to raise short term interest rates so what’s important is what the Fed says in their announcement about the future economy and possible additional rate hikes.  It will also be important to see what comments, or lake thereof, the Fed makes about the recent softening of data showing the economy may be slowing (still to early to tell).  Will the Fed show some concern?  Will the Fed say it’s “transitory”?  Or will the Fed say nothing at all?  No one knows for sure and the markets will take note.  Low California home loan rates are still available as mortgage lenders continue to price their mortgage rates at an aggressive level.

On top of the FOMC meeting later this week is a lot of economic data the market will need to digest.  Today’s big even will be the 10y auction this afternoon.  A good auction could keep a lid on the 10y yield moving higher or a bad auction with weak demand could push the market back into the 2.25-2.30 yield area.  Tomorrow we have the Core Producer Prices and the 30y auction.  This week we also have retail sales, Core CPI, Philly Fed and building permits.

If you are looking to refinance your current mortgage or if you’re looking to buy a new home please be sure to contact us directly at 1-800-550-5538 for a no cost – no obligation quote.  We offer both fixed rate mortgages and adjustable rate mortgages and we have a top rating with the Better Business Bureau.  Right now we’re offering some of the best mortgage rates of the year and we’ll do what we can to earn your business.