Mortgage Rates Continue to Fall

Mortgage rates fell moderately today, even though it seems like very small pieces, it still keeps going towards the bottom line.  US stock indexes have recovered all of the selling from the UK leave vote.  While indexes increased this week the interest rate markets were not impressed and the yields held and actually declined.  Early this morning the 10yr note yield dropped to 1.39% from 1.48% yesterday. On the leave vote very early last Friday morning (3:00CST) the 10 hit 1.41%.

Global interest rates fell around the world today on thoughts that central bankers will act to limit any fallout from the British vote.  Gold and silver increased, silver to its highest price since September 2014.

It was very interesting to see and read all the various “experts” on who should be the next Prime Minister, and what they should do once that person takes over.  Sounded like Fedspeak to me – LOL.

There really is not too much to say than what has been reported all week.  Next week is Job Report Week so some focus might shift back here to the US, but overseas will still demand the most print. 

In summary, this current trend toward lower rates are our friend for now.  Banks have been cautious enough that they will not be forced to raise rates too much if market trends happen to reverse significantly on Tuesday.  More risk tolerant clients are more than justified in floating until we see that sort of pull-back.  Less risk-tolerant clients, or those closing in the nearer future should consider the fact that rates are close to all-time lows and have improved nearly every day this week.  That usually means a pull-back is coming.  Even if it does not derail the longer term trend, it could make today or Tuesday look like good lock opportunities in the short-term.

Have a Happy and Safe Fourth of July!