Mortgage Rates at Two-Weeks Lows

Mortgage rates are on track to finish out the short trading week lower than where they started, as markets will be closed tomorrow for Good Friday.  We are not seeing too much of a change with them today, as the economic data released this morning came in good, neutral, and bad – offsetting most movement.  Currently, we are seeing the rates at two-weeks lows.

Where Are Mortgage Rates Going?                     

>>> Currently we are at two-week lows

It’s been one of those weeks in the market where you take a minute and ponder how futile it can be to project where mortgage rates will move.  As a loan officer, all we can do is gather as much data that we can see, and let our customers rely on what we feel is best for them.

With last week’s Fed outlook propping up the U.S. economy and signaling to investors that maybe they will raise rates at a faster pace than expected, a reasonable thought would be that stocks will rise this week, pushing mortgage rates higher. But that did not happen, as we have seen a retreat from stocks into the perceived safety of government bonds, putting downward pressure on mortgage rates. Tech stocks have been the main target for losses this week due to a variety of reasons.

Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:

“Treasury yields fell from a week ago helping to drive mortgage rates modestly lower. The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasury’s, mortgage rates fell slightly.”

Rate/Float Recommendation           

>>> Lock now while rates are down.

Mortgage rates today are in a very good place if you are closing on a home loan soon. We have not seen 10-year Treasuries break below the 2.80 percent barrier since early February. It seems that these rates could stay within a relatively narrow range for an extended amount of time now, but long-term we believe that they will rise considerably.

In a rising rate environment, the decision to lock or float becomes complicated. Obviously, if you know rates are rising, you want to lock in as soon as possible. However, the longer you lock, the higher your upfront costs. If you are weeks away from closing on your mortgage, that is something to consider. On the flip side, if a higher rate would wipe out your mortgage approval, you would probably want to lock in even if it costs more. If you have yet to talk to a lender, give me a call or visit my website at CallThe Money Man.