Mortgage Rates May 10 2017

Mortgage rates for May 10, 2017 look to start the day flat; to slightly better with some lenders.  The bond market is starting off the day in the green (positive) after the surprise firing of James Comey.  Sometimes politics plays a roll in the markets and it appears today is one of the those days.  The 10y is sitting just above 2.37% and Mortgage Backed Securities have improved in early morning trading.  The best California mortgage rates are near their 2017 lows as mortgage lenders have been a bit more aggressive with mortgage rates over the last few weeks.

equal housing lenderSo how does the firing of the head of the FBI affect the bond market?  Good question.  As we move on to the summer the Trump administration will need to work with Congress to pass his budget, tax reform and health care (all priorities this summer).  Since Trump and his campaign are being investigated by the FBI it now appears to the some that the firing was political and this could cost him much needed political capital in the coming months.  Keep in mind if he loses just a handful of GOP Senators the Administration will not be able to pass anything.  With the firing of Director Comey; Trump is taking a big risk with moderate GOP Senators who may revolt against his agenda in the face of the firing of Director Comey.

Earlier this morning we had the import and export prices reading and both were a bit stronger than expected.  Also mortgage applications ticked up 2.40% in the latest report.  Later today is the 10year auction which can be a market mover so we’ll keep an eye on that.  Tomorrow we have the Core Producer Prices reading and the all important 30year auction.  On Friday we have the CPI and retail sales so the next few days could see some volatility if the readings/auctions are significantly worse or better than expected.