Mortgage Rates Takes a Tumble

Mortgage rates today opened nice and low after a tumble yesterday afternoon that no one saw coming.  Financial market participants continue to sell off stocks and buy bonds, which is contributing to the push lower for rates.

Where Are Mortgage Rates Going?                     

>>> Mortgage rates continue to improve - great time to lock

The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, has fallen almost ten basis points since the start of the week, currently sitting at 2.76%.

The two-month trading range on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, has fallen since the start of the week. After it closed last night, it went even lower in trading, but did open at 2.77%, but has dropped to last night’s lows again at 2.76%.  This move has now opened the door for it to move to 2.70%, our next key technical resistance. All depends on the bearish stock markets. Overall, rates are increasing but not at the long end of the curve with inflation concern not much of a factor at the moment.

What’s been causing the stock sell-off and subsequent bond purchasing? Investors continue to worry about trade concerns, specifically how certain arrangements will affect the tech sector. With market participants getting the jitters, we are seeing a flight to safety toward government bonds. Mortgage rates typically move in the same direction as the 10-year yield.

This morning, it was reported that Pending Home Sales increased by 3.1 percent in February, beating predictions by .1 percent. That is not good news for mortgage rates, because it indicates economic improvement (which then causes prices and rates to rise). It also creates more demand for home loans, which allows lenders to increase pricing and profits. However, this report has not been much significance lately when it comes to the rate mortgage.

Rate/Float Recommendation           

>>> Lock now while rates are low

Mortgage rates have fallen the past two days. The fall has come unexpectedly and provides a great opportunity for anyone looking to purchase a home or refinance their current mortgage to lock in a lower rate. Long-term, mortgage rates are still widely expected to higher as the year unfolds, so the better deals are likely to go to borrowers that take action sooner rather than later. If you are looking for some further advise, give me a call or visit my website at Call The Money Man.