Mortgage Rates May 26 2017

Mortgage rates for May 26th, 2017 are starting off the day in positive territory as the 10y yields has dropped to 2.23% and Mortgage Backed Securities (MBS) have followed.  The FNMA 3.5 coupon is nearing it’s 6 month high of 103.31 (which is good news for mortgage rates!).  Keep in mind these positive moves can reverse, and they can reverse quickly so if current rates make sense for you then don’t take on too much risk in terms of trying to get a small improvement that may never happen.  Especially if you’re buying a home and closing in the next 30 – 45 days; waiting to to lock in a better term is risky.

mortgage interest rateThis morning we had the Durable Goods and preliminary GDP readings.  The headline reading for each report was better than expected however one aspect of the GDP reading was a bit concerning for US economic growth and the Fed’s inflation target.  The GDP Deflator was a bit weaker than expected, not a huge miss but still a miss, and this measures the level of prices of all new goods and services produced domestically.  If prices start to trend down for all new goods and services then the Fed will be concerned about deflation (they want inflation).  As always one reading is not enough and we’ll have to see what happens the next few months as inflation targets for the Fed are very important.  Markets close early today for the three day holiday weekend.  The best California mortgage rates are still near their lows for both fixed rate mortgages and adjustable rate mortgages.

Next week we have the following readings: Personal Consumption, PCE index, Consumer Confidence, Chicago PMI, ADP employment, ISM manufacturing, Construction spending,  and the all important Employment report….busy week!  If you are refinancing your current mortgage or looking to buy a new home please contact us directly at 1-800-550-5538.  We have a top rating with the Better Business Bureau and the Business Consumers Alliance along with industry low rates.

As we head into the weekend lets all remember those who have served and those that have died to protect our country.   “Our debt to the heroic men and valiant women in the service of our country can never be repaid. They have earned our undying gratitude. America will never forget their sacrifices.” – President Harry S. Truman