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Today’s Mortgage Rates to Decrease This Week
 

Today’s Mortgage Rates to Decrease This Week

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Already low current mortgage rates will move lower this coming week. Mortgage rates today on 30 year home loans are averaging 3.79 percent and 15 year mortgage rates are averaging 3.08 percent. Several economic statistics are schedule to be released this week which this reporter feels will be worse then expected which will drive these rates even lower.

On the economic calendar this week we start with Existing Home Sales scheduled to be released tomorrow. The market expects April home sales to come in at 4.65 million homes. New home sales scheduled to be released on Wednesday will surely come in lower than the expected number of 339,000.

Thursday will see the release of Initial Jobless Claims which the market expects to be at 365,000. This one will have the most impact on bond yields higher or lower. As bond yields go so do average mortgage rates.

Two other reports due that will have an impact on rates include April Durable Orders, expected to come in at 0.3% and Michigan Sentiment (consumer) which is expected at 77.5.

All these reports will have a direct impact on Treasury yields which in turn will drive mortgage rates higher or lower. The past couple of weeks we have seen new all-time fixed average mortgage rates for both 30 year and 15 year rates in Freddie Mac's PMMS.

In the last mortgage survey 30 year rates hit an all-time low of 3.79% and 15 year rates a low of 3.04%. Since the last report, ten year bond yields are 2 basis points lower and were as low as 6 basis points lower at 1.70%.

Some bad economic numbers this week will send 10 year bond yields as low as 1.65% or even lower. If that happens you can expect to see 30 year mortgage rates as low as 3.70% and 15 year mortgage rate break 3.00% and possibly go as low as 2.95%.

Author: James Martin
May 21st, 2012