Mortgage rates were flat on Monday, as treasury yields spiked, following an upbeat assesment over the economy from New York Fed President William Dudley, suggesting that the U.S. central bank will stick to its rate-hike plan going forward, despite the recent set of weak economic data. Speaking at a business roundtable in Plattsburg, NY on Monday, the influential Fed official said that inflation should rise alongside wages, as the labor market continues to improve. Dudley’s comments are signaling, that the Fed remains upbeat about the economy and stays on track to hike once more later this year. According to the closely-watched CME FedWatch tool, which tracks the 30-day Fed Fund futures prices, traders currently see a 39.9% chance of a rate hike before the end of 2017.
Following hawkish remarks from the New York top Fed official, the yield on the 2-year treasury note, which is highly sensitive to the Fed’s rate policy outlook, bumped higher to 1.36%, marking the highest level since March 14. As far as the benchmark 10-year treasury note is concerned, which is a bedrock of global finance, the yield closed Monday’s trading session at 2.19%, up 3 basis points compared to the previous data. The 10-year treasury bond is one the best indicators when it comes to determining whether mortgage rates rise or fall. As interest rates tend to follow the lead of the 10-year treasury note, chances you may see slightly higher mortgage rates or higher upfront costs at your favorite lender this Tuesday, though the changes are most likely negligible. The longer-term, 30-year treasury yield finished the trading day at 2.79%, inching higher 1 basis point compared to the previous 2.78% on Friday.
Speaking about current economic conditons at a separate event in New York on Monday, another top U.S. policymaker, Chicago Fed President Charles Evans called for gradual rate hikes, adding that it could be worthwhile for the central bank to wait until the end of 2017 to see whether they can move forward with another rate increase. Evans, who is a voter on the Fed’s policy-setting committee this year, said, that he supports the current, gradual pace of rate hikes and a slow reduction of the Fed’s balance sheet.
The contingent of Fed officials scheduled to make public appearances today includes Fed Vice Chairman Stanley Fischer, Boston Fed President Eric Rosengren and Dallas Fed chief Robert Kaplan. Investors and traders will be closely watching these events for hints on future monetary policy.
This Tuesday morning pricing on mortgage-backed securities (MBS) is in the green, which is a good sign for today’s mortgage rates. However, as this week’s economic calendar is particularly light on influential data, mortgage interest rates may not move too much. Given the light economic calendar, Fedspeak will likely attract the most attention. Overall, the lack of hard economic data is a good thing for mortgage rates as the recent run of low rates may continue over the course of the week. This could certainly be a great time for anyone looking to refinance an existing mortgage or buy a new home, as current mortgage rates continue to hover near the lowest levels in more than 8 months.
Mortgage rates are holding steady this Tuesday at the top U.S. loan providers. At Bank of America (NYSE:BAC), the 30-year fixed conventional home loan carries a rate of 3.875%. The 15-year fixed home loan alternative is coming out at 3.000%. The bank’s home refinance loan options include the long-term 30-year FRM, which is offered a rate of 4.000%. The 15-year fixed refinance loan is currently available at a rate of 3.125% at this lender.
Over at Wells Fargo (NYSE:WFC) the 30-year fixed home refinace loan is up for grabs at a rate of 4.125%. The 15-year version of the lender’s refinance loan package can be secured for as low as 3.375%. Moving on to conventional home loan options, the bank’s standard 30-year FRM can be locked in at a rate of 3.875%. The shorter-term, 15-year fixed counterpart may fit the bill better for some mortgage shoppers, as it’s available today at a rate of 3.375%, according to the latest data. Borrowers looking for FHA home loan options, will see the 30-year fixed FHA mortgage coming out at 4.500% at this lender. Those preferring the 30-year fixed VA refinance mortgage, can expect to pay 3.750% interest cost.
Staying with home loans, over at US Bank (NYSE:USB) the 30-year fixed conventional mortgage is advertised at a rate of 3.875%, according to the updated loan information. Indviduals, who are interested in obtaining the 15-year fixed home loan package, will see it carrying a rate of 3.250% as of today.
At Quicken Loans, the long-term 30-year home refinance loan, which comes with a fixed interest rate over the term of the mortgage, can be locked in at a rate of 3.875%. Currently, the shorter, 15-year fixed refinance mortgage can see balances cleared at a rate of 3.125% at this loan provider.
The above mentioned interest rates are subject to change and are not guaranteed. Click here to search for live mortgage rate quotes at some of the top U.S. lenders.