Mortgage Rates June 13, 2017

Mortgage rates for June 13, 2017 are starting off the day at similar levels seen on Monday.  The Mortgage Backed Securities Market (MBS) is essentially flat to start off the day and the 10y yield is just below the 2.22 level.  This mortgage interest ratemorning we had the Core Producer Prices reading and that came in just a bit higher than expectations.  Later today we have the 30y auction; yesterday’s 10y auction was a bit below expectations.  Tomorrow is an important day; we have Retail Sales and CPI and the all important FOMC rate decision.

So if the Fed raises rates will mortgage rates go up?  Not necessarily as the market is expecting the Fed to raise short term interest rates 0.25 of a point.  If they raised by .50 point that may add some pressure to move mortgage rates up however the big thing will be what the FOMC says about the economy and future expectations for the economy.  Some economic data points have been showing to a potential slowing in the economy and a cooling of inflation.  Will the Fed say this is “transitory” (likely) or will they say they are concerned about the potential of a slow down?  Know one really knows and we’ll just have to wait and see.

Mortgage rates overall have been steady to slightly worse for some lenders over the past 5-7 days.  There are varying opinions as to “why” and mine is that the market is taking a cautious approach to the FOMC meeting as it should and usually does.  Provided there are no significant surprises mortgage rates should remain stable through out the week as we move closer to Summer.  The best mortgage rates of 2017 can still be found with some lenders although the cost to obtain them may be a bit higher for some.  If you are considering a refinance of your current mortgage or you are looking for a new home please be sure to call us directly for a no cost – no obligation quote.  We offer industry low mortgage rates and top notch customer service.  Our toll free number: 1-800-550-5538.