Mortgage Rates June 5, 2017

Last week was great for mortgage rates so it’s not surprising we’re starting off the day with a little selling in the bond market.  Mortgage rates for June 5, 2017 are starting off the day a bit worse overall but nothing to alarming.  The general direction of low rates for 2017 is still intact and today appears to be a day of cooling of from the great moves last week.  So far this morning we’ve received the Labor Costs reading and that came in a bit below expectations. mortgage interest rateLater today there is the ISM reading….tomorrow there are no major economic readings.  Actually the rest of the week is fairly light on economic data.  As we go through the day I still expect to see low home loan rates on both fixed rate mortgages and adjustable rate mortgages.

So what was so great about last week?  The 10y yield move below 2.15 and essentially hit a level not seen since just after the election back in November 2016.  Many factors have contributed to the recent move down in yields but the Friday jobs report was the most recent factor.  The number of jobs created and the wages earned were a disappointment as investors have been hoping for an improving economy in 2017.  What appears to be happening is that the economy may be slowing and to make matters worse (for the economy) the Fed will most likely raise rates again at their next meeting.   Unless we see a motivating factor; we’ll most likely see the 10y yield stay above the 2.15 for now as the market continues to digest the economic environment and current bond yield levels.

As always will keep you updated if we see any significant moves today or important news items that may move mortgage rates.  If you have any questions or would like a quote for new mortgage loan in California please be sure to contact us directly at 1-800-550-5538.