Mortgage Rates Higher Than Yesterday

Mortgage rates today are considerably higher than yesterday, and this morning's data point to increasing rates. The only economic report we get this morning is January's Factory Orders. This figure measures manufacturing sector strength by tracking new orders. Investors are looking to gain more of an appetite for riskier assets. Mortgage rates are holding at those levels today. The big economic event that could affect rates this week is the monthly jobs report for February on Friday.

Where Are Mortgage Rates Going?                     

>>> Mortgage rates flat today but higher on the week

We are still fresh into the week but already we have seen current mortgage rates bounce around. The week kicked off with financial market participants moving more into the safe-haven play of government bonds. This was in part due to the uncertainty surrounding both the Italian election and President Trump’s steel and aluminum tariffs. Investors did start to find their footing as the day unfolded, though, and the retreat from bonds into stocks wound up pushing Treasury yields higher.

We saw the yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going) move up from 2.83% to 2.88%. Today, it is back down slightly at 2.87%. Mortgage rates typically move in the same direction as the 10-year yield, so mortgage rates are higher than where they were yesterday morning but mostly flat on the day.

So where are we going from here? It seems that most market participants are going to continue to be influenced by the trade rhetoric out of D.C.  A quick glance at the news headlines reveals that high-ranking Republicans are trying to talk Trump out of his current position. Speaker of the House, Paul Ryan, made a clear statement that he does not want a trade war to disrupt a strengthening U.S. economy.

Not surprising, Trump has remained steadfast in his position, stating on Monday “No, we are not backing down.” Still, the situation remains unclear and no know (per usual) knows exactly what Trump is going to do.

Rate/Float Recommendation           

>>> Take Action Soon

Learn what you can do to get the best interest rate possible. This is just the beginning, too. According to many analysts, we will see the 30-year fixed rate move up another fifty basis points by the time 2019 rolls around. The issue is that mortgage rates are on track to rise considerably, so borrowers who take action sooner rather than later are likely going to get the better deal on a purchase or refinance.