Mortgage Rates June 15, 2017

We’re starting off the day with bonds a bit weaker and so mortgage rates/terms might be slightly worse for some lenders.  Not a big deal though because yesterday was a fantastic day for bonds and a slightly weaker day or even a mortgage interest ratefew days is okay as the market settles in to a 10y yield below 2.20%.  Yesterday the 10y hit 2.10% before settling below 2.13%.  This morning we’re seeing the 10y just above the 2.16% level and Mortgage Backed Securities are following that move up in yield.  Overall mortgage rates remain at their 2017 lows.

This morning we had the Philly Fed Index reading and it came in stronger than expected however Export Prices came in weaker than expected.  As you know yesterday the Fed raised short term interest rates (for the 4th time since 2015) and also discussed how it would reduce it’s balance sheet.  Some believe the Fed will raise rates one or two more times before the end of 2017 however if the inflation data continues to weaken any possible increases may be delayed.  Are you a First Time Home Buyer (FTHB) wondering if rates are low enough to move forward or are you wondering is now is a good time to refinance?  Generally speaking now is the best time this year to move forward on a purchase or a refinance (when comparing current mortgage rates to those seen in the first 3-4 months of 2017).

Tomorrow we have Housing Starts, Building Permits and the preliminary Consumer Sentiment number before we head into the weekend.  One quick note; if you are looking to buy a home and have a small down payment and/or a less than perfect credit score it might be a good idea to check out a FHA Mortgage.  Right now FHA mortgage rates are attractive and FHA mortgages are a bit more flexible than your conforming loans offered by Fannie Mae and Freddie Mac.  If there are any significant news items that come out today or we see a significant move in mortgage rates we’ll certainly update the post.  If you have any questions or would like a no cost – no obligation quote please be sure to give us a call directly at 1-800-550-5538.