Mortgage Rates Lower Today

Mortgage rates today are lower than yesterday across the board. That's is a good thing but pay attention as the volatility in the market can still swing this either way - especially in light of the increased tensions between China and the U.S. regarding tariffs between the two countries.

Where Are Mortgage Rates Going?                     

>>> Rates are moving lower due to trade war concerns

There was heavy volatility yesterday in the bond and stock markets after the FOMC and Powell’s press conference. The Federal Funds rate was increased 0.25% as widely expected. One of the comments in the policy statement got our attention; “Recent data suggest that growth rates of household spending and business fixed investment have moderated from their strong fourth-quarter readings”. The initial reaction to the policy statement drove stocks higher and interest rates also higher; it took 30 minutes to swing both markets around. The DJIA was up 237 points but ended down 45. The 10-yr yield jumped to 2.93% then improved step by step with stock indexes dropping.

We saw the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) move up during early trading yesterday ahead of the announcement and those levels were held for most of the day once the news broke.

The Fed also reiterated their position that a total of three rate hikes in 2018 will be necessary, and even more notable was the fact that the number of FOMC members that felt four rate hikes are needed crept up from the prior meeting’s four to seven.

Today, the markets are trying to digest even more news regarding the increased trade tensions between China and the U.S. President Trump - who is expected to reveal tariffs on a variety of Chinese imports later today.  The expectation is for China to respond with their own tariffs.  We have seen the 10-year Treasury hit 2.80% earlier today but is now currently at 2.83%.  Pay attention for further developments.

Rate/Float Recommendation           

>>> Lock now while rates are this low.

Talk about a roller coaster ride.  We have seen a big swing in the markets, and there is still more news to come.  The wildcards are tariff talks as I mentioned last week as anything can happen on the geopolitical front. With rates down, right now is the perfect time to lock in a rate on a purchase or refinance. Give me a call or visit my website at CallTheMoneyMan.com.