Mortgage Rates Increase as 10-Year Treasury Stops Shy of 3.0%

I apologize for the tardiness on getting this report out so late, but had the pleasure to talk with a giant in our industry today by a gentleman known as the "Mortgage Godfather".  With yours truly known as "The Godfather" here in the St. Louis market, I was truly blessed to have a great conversation with Mr. Ralph LoVuolo, Sr. who by far can teach this old dog some new ideas on how I can approach my goals on taking care of you as my customers. There will be more that will come out on this in future writings, but back to what happened today in the markets.

Mortgage rates today were all over the map. With no economic news that was being reported out there today, the Mortgage Backed Securities took their cues off the financial markets. Unfortunately, what news was followed has put the rates close to four-year highs pushing past the rates we saw in late February.

Where Are Mortgage Rates Going?                      

>>> Higher

With no scheduled economic reports today, corporate earnings reports continued to be the momentary dominate focus for markets. Comments from various Fed officials today did not come out and say anything new, as we all know that the Feds will be increasing rates, the economic outlook improving, and that the labor market is still not at full employment – just general comments from all other Fed officials that usually comes out between meetings.

Recently we have talked about the explosive increase in all commodity prices as a lead into increased inflation.  The run-up in crude oil as fueled most every major commodity to move higher. Commodity markets now under the scope of bond and mortgage markets, inflation outlooks are edging higher and will continue as long as crude oil that leads the rest continues to increase. Trump blasted OPEC and other oil producers that are pumping oil but storing it to keep prices increasing.  

Looking over all the news wires there was not much out there today. The one point that needs to be noted was the 10-year Treasury pushing to its highest levels since early March as it closed at 2.97% this afternoon. If this does not hold and retreat, we will fly past 3.00%, and the new ceiling will have to be adjusted.

Rate/Float Recommendation           

>>> Do not wait – lock in rates now

Interest rate did not stop from increasing today, even with no news to digest about the economy.  With the 10-year Treasury hitting levels not seen before in quite a while, we are seeing the mortgage rates hit four-year highs which caused many phones to ring in lenders’ offices today.    

This is still a good time to buy a home.  With inventory as low as it is, it is still a factor on why we are seeing a number of buyers who want to move fearful of where the rates will be when they pull the trigger.  Rates are on track to move higher as the year unfolds so most borrowers will be better off locking in a rate soon.  If you have any further questions, give us a call or visit our website at Call The Money Man.