Mortgage rates are at some of the lowest levels of the year as we start the week. There is a lot of economic data out over the next several days, culminating with the monthly jobs report for August on Friday. Given all of the data, there could definitely be some rate volatility beginning on Wednesday. Anyone who wishes to avoid dealing with that should lock before then. Read on for more details.
Where are mortgage rates going?
Busy week for economic data – Rates still near year lows
It’s a fairly busy week ahead for economic data in the U.S. The action really begins to pick up on Wednesday when the second estimate for second-quarter GDP gets released. Analysts are calling for a two tenths increase to the first reading, bringing it up to 2.8%.
Click here to get today’s latest mortgage rates (Aug. 28, 2017).
On Thursday we get the Fed’s favorite inflation reading: Core PCE. Inflation hasn’t been performing as strongly as Fed officials would like in 2017, and has played a big factor in the decision to keep the federal funds rate where it is.
Financial market participants will certainly be watching this report with a keen eye. If we did see a significant increase to Core PCE, that would likely put upward pressure on mortgage rates.
Finally, on Friday we wrap the week up with the Employment Situation (a.k.a. the monthly jobs report) for August. Analysts are expecting around 180,000 private sector jobs added to the U.S. economy in August.
That’s down from July’s impressive 209,000, but still a strong enough reading to keep up investors optimism about the labor market. As is the case with any jobs report, the greatest adjustment to mortgage rates will happen if the headline reading is either far above or below what is projected. A surprisingly strong reading would send rates higher and vice versa for a disappointingly low reading.
The good news for borrowers is that mortgage rates are very close to 2017 lows right now. The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) is down at 2.16%–a two month low. Mortgage rates typically move in the same direction as the 10-year yield, so rates are at very accommodating levels right now.
What does this mean for me?
Lock now while rates are this low
Mortgage rates are starting the week at some of the lowest levels of the year. No one knows exactly what will happen when all of the domestic data gets released this week, but there is definitely a lot of potential for some rates adjustments. If you don’t want to risk dealing with higher rates, then you should lock now and take the sure thing.
To get the most accurate idea of what kind of rate we could offer, you should fill out our short form and get a personalized rate quote. Or, if you’d rather talk to someone, you can always call one of our experienced mortgage specialists.
They can walk you through the same process, clarifying any questions you may have, and let you know what your custom rate quote is.
Today’s economic data:
International Trade in Goods
The nation’s trade deficit widened to $65.1 B in July.
Dallas Fed Mfg Survey
The Dallas Fed Mfg Survey for August came in at a 20.3. That’s down slightly from the prior reading of 22.3.
Notable events this week:
- International Trade in Goods
- Dallas Fed Mfg Survey
- S&P Corelogic Case-Shiller HPI
- Consumer Confidence
- ADP Employment Report
- EIA Employment Status Report
- Jobless Cuts
- Personal Income and Outlays
- Chicago PMI
- Pending Home Sales Index
- Employment Situation
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
- Consumer Sentiment
Rates are still near 2017 lows. Contact us today to see if we can save you money on your home payments.