Mortgage Rates May 18 2017

Mortgage Rates for May 18, 2017

This is turning out to be a good week for bonds and in particular Mortgage Backed Securities (MBS).  As of this morning we’re seeing a rally in the bond market, similar to yesterday, as the political fallout from Washington continues to grow.  Mortgage rates for May 18, 2017 might be a bit improved compared to yesterday (at least that is what we should see to start off the day; things may change in the afternoon).  The appointment of “Special Counsel” and a Washington Post story about how Republican mortgage interest rateleadership talked (potentially joked) about how the President was paid by Vladimir Putin and that Speaker Ryan requested the conversation not be disclosed or per the article “leaked” (just for clarity the conversation took place last summer and the Washington Post included a complete transcript of the conversation and the conversation has been confirmed by people who were apart of the conversation).  In the markets perception can be more important than reality and right now the perception is that things are starting to spiral out of control in Washington and that’s not good for the economy (but good for bonds).  This is why we’re seeing the move down in yield on the 10y and follow rally in Mortgage Backed Securities (MBS).  The market current is right at the best mortgages rates we’ve seen in 2017.

As of this morning we’re seeing the 10y yield sub 2.20%.  It’s important to keep on eye on what’s going on in Washington and if the current political turmoil not only continues but gets worse for the Administration.  If it gets worse; bonds will continue to rally and mortgage rates should improve however the improvements might be slow as they usually are when bonds rally from non-economic news.

This morning we received the Philly Fed Index reading and that came in stronger than expected, we also had the unemployment reading which was lower than expected and later today we have the 10y auction which can have an influence on the markets.  Here is the reading from Reuters on the Philly Fed Index:

RTRS – PHILADELPHIA FED BUSINESS CONDITIONS MAY +38.8 (CONSENSUS +19.5) VS APRIL +22.0

RTRS – US JOBLESS CLAIMS FELL TO 232,000 MAY 13 WEEK (CONSENSUS 240,000) FROM 236,000 PRIOR WEEK (PREVIOUS 236,000)

If we see any significant movement later today we’ll certainly update the post.  If you have any questions or would like a no cost/no obligation quote please contact us directly at 1-800-550-5538.  Are you a first time home buyer in California? We offer fixed rate mortgages and adjustable rate mortgages, we have a top rating with the BBB and the BCA and provide industry low mortgage rates for both purchase and refinance transactions.