Mortgage Rate Trend Index Down: Oct. 16, 2014
Will rates go up, down or remain unchanged?
Branch manager, Academy Mortgage, Yuma, Arizona
As continued uncertainty in global economic news is circulated, the bond market continues to strengthen. Look for rates to dip again with any further negative news, both domestic and foreign.
Senior loan officer, RPM Mortgage, San Francisco
This week, all I am going to do is gloat because seven months ago I called for a 2.25 percent yield on the 10-year Treasury note. That level was reached on Oct. 14. This is the bottom, or close to it.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
Markets are gripped by global growth worries, bringing bond yields and mortgage rates back to levels last seen in the first half of 2013.
Director of secondary marketing, CMG Financial, San Ramon, California
Economic woes continue in Europe, and that malaise is catching up to figures on the homefront. Several leading indicators are showing a slowdown. The Fed has hinted that rates may stay at current levels longer than expected, with any move now pushed out to the end of 2015. With its quantitative easing (bond-buying) ending this month, the Fed may be forced to use other tactics in order to maintain its dual mandate.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
Since Sept. 18, the 10-year Treasury yield has fallen more than 60 basis points. During that same time, mortgage rates have not declined nearly as much. We are benefiting from fear in the markets created by tremendous uncertainty related to the "fear factor" of the day. ISIS, Ebola, economic slowdown, etc., are driving the drops that we are seeing in the equity markets and the frenzy in the bond market. With all of that said, you would think we would have significantly lower mortgage rates compared to a month ago. We haven't yet seen them really slide and likely won't for a while. Rates should continue to improve, but to what degree? The jury is still out.