Mortgage Rates in Tight Range

Mortgage rates are likely to move sideways to slightly higher today and remain in the most recent tight range it has been for the past several weeks.   Unexpected news on NAFTA or talks of a trade war is something that can increase volatility and move these rates out of this range, but it now looks like nothing will shake them until we get the monthly Jobs Report on Friday.

Where Are Mortgage Rates Going?                     

>>> Rates rise after moving lower yesterday

Mortgage rates are moving a little higher today. Yesterday, we saw the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, move down to its lowest level since late January.

Mortgage rates typically move in the same direction as the 10-year yield so rates improved slightly to start the week. Today, we’ve seen a bit of a reversal in the market with investors moving back into stocks, pushing Treasury yields and mortgage rates higher.

Yesterday stock indexes were hammered, and the interest rate markets showed very little reaction with the entire yield curve ending the day unchanged and MBS prices also little changed. This morning we are seeing a little bit of a push, much like we did yesterday morning, for the rates to go higher.

There is not much news today.  While watching the stock market, the bond and mortgage markets are not likely to improve now ahead of Friday’s employment data. Even the strong selling in US stocks yesterday hardly moved the interest rate markets – even though the 10-year treasury note pushed towards the 2.70% threshold, it looks like it does not want to break that barrier at this time.

There will be no winners in trade fights and all major global policy makers know it.  Trump got the ball rolling that eventually will lead to new trade pacts - shock and awe has been the recent catalyst for the corrections in stock indexes. The end of the equity market correction is getting close.

Rate/Float Recommendation           

>>> Lock now while rates are low

Mortgage rates are on track to stay relatively flat this week. This is good news for anyone looking to buy a home or refinance their current mortgage. 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 not yet talked to a lender, or would like a second opinion, give me a call or visit me at Call The Money Man.