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Posted 03/17/2017


Mortgage Rates Today, March 17, 2017, Plus Lock Recommendations

What's Driving Mortgage Rates Today?

This morning, stock markets are mixed but flat, and yields for ten-year Treasuries are down by .2 percent. CNNMoney's Fear & Greed Index has fallen back from a neutral 53 to an even more neutral 51. These signs are all good for mortgage rates today.

We also have a couple of reports.

Consumer Sentiment for March

Experts predicted this reading would be 97.  It came in at 97.8. That's higher, which could be negative for mortgage rates. However, it's a preliminary reading, and may not have too much impact.

Consumer Sentiment is important for mortgage rates because two-thirds of our economy is driven by consumer spending, and we spend more when they feel upbeat about economic prospects.

Industrial Production Report

Industrial production was expected to fall by 0.3 percent in February. Instead, we got a sixth straight month of manufacturing increases, according to the Federal Reserve. US buyers are shopping for cars at levels approaching all-time highs, and exports are strong as well.

This is great for the economy but does indicate heat. Increasing economic activity does tend to fuel concern about inflation, and push interest rates higher.

Today's Mortgage Rates

urrent mortgage rates

** FHA APRs include government-mandated mortgage insurance premiums (MIP). 

These rates are averages, and your rate could be lower.

Request a personalized quote from a licensed, reputable lender here.


Next Monday, like most Mondays, has no pertinent economic reporting scheduled. Mortgage rates will largely be driven by global economic news, stock market activity and random tweets from the White House.

Rate Lock Recommendation

This is a good time to take advantage of the drop in pricing. I recommend locking for anyone closing n the next 60 days.


Note that this is what I would do if I had a mortgage in process today. Your own goals and tolerance for risk may differ. 

>>Ready to lock? Click here.<<

What Causes Rates To Rise And Fall?

Mortgage interest rates depend on a great deal on the expectations of investors. Good economic news tends to be bad for interest rates, because an active economy raises concerns about inflation. Inflation causes fixed-income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.

For example, suppose that two years ago, you bought a $1,000 bond paying five percent interest ($50) each year. (This is called its “coupon rate.") That’s a pretty good rate today, so lots of investors want to buy it from you. You sell your $1,000 bond for $1,200.

When Rates Fall

The buyer gets the same $50 a year in interest that you were getting. However, because he paid more for the bond, his interest rate is not five percent.

  • Your interest rate: $50 annual interest / $1,000 = 5.0%
  • Your buyer’s interest rate: $50 annual interest / $1,200 = 4.2%

Your buyer gets an interest rate, or yield, of only 4.2 percent. And that’s why, when demand for bonds increases and bond prices go up, interest rates go down.

When Rates Rise

However, when the economy heats up, the potential for inflation makes bonds less appealing. With fewer people wanting to buy bonds, their prices decrease, and then interest rates go up.

Imagine that you have your $1,000 bond, but you can't sell it for $1,000, because unemployment has dropped and stock prices are soaring. You end up getting $700. The buyer gets the same $50 a year in interest, but the yield looks like this:

  • $50 annual interest / $700 = 7.1% The buyer’s interest rate is now slightly more than seven percent.
Click to see today's rates (Jul 25th, 2017)

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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2017 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)