Mortgage Rates June 9, 2017

Mortgage rates heading into the weekend will be a bit worse for some borrowers as bonds continue to weaken this morning.  Nothing surprising though since it’s been a great 3-4 weeks and for the most part it appears bonds and mortgage rates are taking a “breather”.  Short term there may be some further weakening but overall things look mortgage interest ratepositive for mortgage rates to stay relatively near or at their 2017 lows.  Yesterday was “Comey Day” and the British elections; both proved to be a relative non-event which happens sometimes.  After hitting 2.13% three days ago; the 10y yield is at 2.22% this morning and unless some positive bond news comes out this afternoon I wouldn’t be surprised to see it go into the weekend around this level.  After the 3.5 FNMA coupon hit the 103.50 level it has since dropped to 103.12.

This morning we have the Wholesale Inventories reading and that came in much weaker than expected…..other than that no other major economic readings for the day.  With the Fed meeting later this month many people are asking: If the Fed raises interest rates will mortgage rates go up?

Reuters did release some recent polling data this morning:

REUTERS – REUTERS POLL-U.S. CORE PCE INFLATION FORECAST TO AVERAGE 1.5-1.7 PCT EACH QTR THIS YEAR (1.7-1.8 PCT IN MAY POLL)

REUTERS – REUTERS POLL-U.S. GDP TO GROW ANNUALIZED 3.0 PCT IN Q2 (3.2 PCT MAY POLL); 2.0-2.5 PCT FROM Q3 2017 TO END-2018 (2.4-2.5 PCT IN MAY)

REUTERS – REUTERS POLL-20 OF 49 ECONOMISTS SAY CONVICTION FOR FEDERAL REERVE RATE HIKE AFTER JUNE DECREASED OVER PAST MONTH; 22 SAY NO CHANGE

Next week we have a decent amount of auctions and economic data coming out including:  10y auction on Monday; Core Producers and 30 year auction on Tuesday; Retail Sales, CPI and Core CPI and the FOMC rate decision on Wednesday; import prices and the Philly Fed reading on Thursday; housing starts and building permits on Friday. Obviously the biggest is the FOMC rate decision; and not so much if they are raising rates or not bu mostly what the Fed members say about the economy going forward.  Data has been getting a bit soft recently and it will be interesting to see if they think this is a blip or a possible trend.

If you are looking to buy a new home or refinance your current mortgage please be sure to give us a call directly for a no cost – no obligation quote.  We offer industry low interest rates and top notch customer service.  Our direct number is 1-800-550-5538.