Mortgage Rates May 31 2017

Yesterday we started off the week on a positive note as mortgage rates generally improved.  Mortgage rates for May 31, 2017 are starting off the day similar to Monday as we move towards the latter part of the week.  Earlier this morning we received the MBA (Mortgage Banker Association) Purchase and Refinance Index and both readings were lower than the previous month.  That is a bit surprising since mortgage rates have generally improved over the last month so I’d imagine some were expecting to see a better reading.  Over the last 24 hours we’ve heard from various mortgage interest rateFOMC members and this morning FED President Kaplan stated he backed a gradual and patient tightening policy since inflation was low and the economy wasn’t expanding too fast.  Most analyst believe that the FED will raise short term interest rates at their next meeting.  What is unclear is what the FED will do the rest of 2017 since some of the data readings suggest that prices are cooling and inflation is set to remain below the FED’s target.  Also wages are not increasing as much as the FED would like despite a tight labor market.  The best California mortgage rates can still be found as fixed rate mortgages and adjustable rate mortgages continue to settle right at their 2017 lows.   The 10y yield is starting off the day at the 2.21% level and the 3.5 FNMA is at 103.20 while the 4.0 FNMA coupon is 105.55.  Both are at or near the best levels of 2017 which is good news for mortgage rates.

If you have any questions or wish to get a no cost – no obligation mortgage quote please be sure to contact us directly at 1-800-550-5538.  As always if we have any important updates we’ll make sure we get those out to you in a timely manner.

UPDATE:

Chicago PMI for May 2017 came in lower than expected.  The reading of 55.2 is also below the previous months reading of 58.3.  The 10y yield is at 2.19%.  Also Pending Home Sales came in negative which was below the positive expectation of 0.5 (CORRECTION- They apparently released the wrong number!  The reading was 59.2 not 55.2 so the report came in stronger (not weaker) than expected).