Mortgage Rates In Holding Pattern
Mortgage rates are showing little change from yesterday
and are on track to finish out the week lower than where they started. It looks
like we are in a holding pattern as the markets still digest this morning’s
data. Almost as predictable as the sun
rising in the East, the 10-year Treasury yield has now also settled into a
tight range.
Where
Are Mortgage Rates Going?
>>>
Holding
but down for the week
We got some strong economic data this morning, with
consumer sentiment hitting a 14-year high, job openings hitting an all-time
high, and industrial production with its biggest jump in four months. The
positive readings have helped push all of the major stock market indexes
higher. With more investors going into stocks, fewer are in bonds, pushing up
Treasury yields.
The yield on the 10-year Treasury note has moved up a
little to 2.84%, which is nearly four basis points below where it was during
the week’s high on Monday. There is nothing
we see that will push prices one way or another with the FOMC meeting beginning
next Tuesday, when it is almost a certainty that they will raise the Fed rate.
Still, it will all be about the statement that characterizes the economic
outlook and inflation that the markets will pay attention to.
Rate/Float
Recommendation
>>>
Lock now to avoid risk of rising rates
Mortgage rates are on track to wind up lower than
where they started the week. This is obviously good news for borrowers looking
to buy a home or refinance their current mortgage. If you want to take
advantage, you should try and act quickly because rates could jump at a
moment’s notice.
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