Mortgage Rates May 15 2017

Despite receiving some mortgage rate friendly data, the NY Fed reading came in weaker than expected, this morning bond have sold off a bit and mortgage rates for May 15, 2017 are flat (compared to Friday).  Mortgage rates move in relation to the Mortgage Backed Securities markets (MBS) however sometimes if there are small movements (like this morning) most lenders will not adjust terms to start off the day.  The 10y year yield was at 2.34 this morning; Friday it was at 2.32 heading into the weekend.  On Friday we had a nice move down in the 10y yield and mortgage equal housing lenderbonds (and thus mortgage rates) followed.  The Core CPI and Retail Sales came in weaker than expected and part of the rally was technical in nature (10y rejecting a yield above 2.41).  Mortgage rates for the week face a few challenges if stocks continue to rally.  Also towards the end of the week we have the 10yr auction.  Refinance and purchase mortgage rates are doing well overall; however the past week has been a bit volatile.  I’m expecting that to continue until we have a clear picture of the direction of the economy and if the current administration will be able to implement their tax reform and push forward with their budget.  Mortgage lenders overall have been less cautious with rates as the market has settled into a range that might continue for some time.  If you are considering a refinance of your current mortgage or are considering a home purchase in the State of California please be sure to contact us at 1-800-550-5538 for a no cost/no obligation quote.