Mortgage Rates In Holding Pattern

Mortgage rates are showing little change from yesterday and are on track to finish out the week lower than where they started. It looks like we are in a holding pattern as the markets still digest this morning’s data.  Almost as predictable as the sun rising in the East, the 10-year Treasury yield has now also settled into a tight range.

Where Are Mortgage Rates Going?                     

>>> Holding but down for the week           

                      

We got some strong economic data this morning, with consumer sentiment hitting a 14-year high, job openings hitting an all-time high, and industrial production with its biggest jump in four months. The positive readings have helped push all of the major stock market indexes higher. With more investors going into stocks, fewer are in bonds, pushing up Treasury yields.

The yield on the 10-year Treasury note has moved up a little to 2.84%, which is nearly four basis points below where it was during the week’s high on Monday.  There is nothing we see that will push prices one way or another with the FOMC meeting beginning next Tuesday, when it is almost a certainty that they will raise the Fed rate. Still, it will all be about the statement that characterizes the economic outlook and inflation that the markets will pay attention to.

Rate/Float Recommendation           

>>> Lock now to avoid risk of rising rates

Mortgage rates are on track to wind up lower than where they started the week. This is obviously good news for borrowers looking to buy a home or refinance their current mortgage. If you want to take advantage, you should try and act quickly because rates could jump at a moment’s notice.