Mortgage Rates Holding Steady

Mortgage rates today are basically unchanged as we head into the afternoon. As mentioned yesterday, it has been a rather quiet week as the rates overall stayed in a tight range.   The news this morning came in a little light than what was anticipated as there was no inflation reported.  Consumers feel confident about the economy and expect a rate increase from the Fed.

Where Are Mortgage Rates Going?                     

>>> Rates continue to slide sideways as we head into the weekend

We have seen at various times since this movement began in January, rates have bounced around going up with some news, but come back as the news was not as robust to cause a change. We were seeing it a little on Wednesday, but not enough to get alarmed.  With no major economic reports getting released and relatively little happening on the political front, financial market participants were for the most part stuck in a holding pattern.

The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, did briefly touch 3.00% on Wednesday but quickly retreated back down on Thursday after the Consumer Price Index reading came in below expectations. It now sits close to where it started the week, at 2.97%. Mortgage rates typically move in the same direction as the 10-year yield, so rates remained mostly unchanged this week.

The reports this week were considerably less important than last week’s. We do not get anything special until next Wednesday - unless the Iran deal blows up or the Chinese trade war escalates, which can happen any day.

Rate/Float Recommendation           

>>> Lock now before rates move higher

Mortgage rates have not done any major push one way or another this week, as this tight range seems to be holding.  However, there is no indication that rates will not continue to rise as weeks progress.  If you can get a better rate by waiting a day or two, just weigh out the risk as it is like gas prices, which rise faster before they level off.

If you want to avoid the risk of locking in after this happens, you should lock in your rate now. Despite what happens in the near-term, mortgage rates are still expected to move higher in the long run so locking in a rate sooner rather than later remains the smart decision for most borrowers. If you have any further questions, give us a call or visit our website at Call The Money Man.