Mortgage Rate Trend Index Down: Feb. 4, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Last week I was speculating about the Fed meeting and subsequent statement and its possible effect on interest rates. But I was focusing on the wrong central bank. It was the Japanese Central Bank that shocked the world when it joined Europe in moving to negative interest rates. This drove yields down on Treasury bonds as well as mortgage rates. With speculation about whether the Fed will reverse course on interest rates and so much uncertainty in regards to the global economy I see rates dropping a little further in the week ahead.
President, Independent Mortgage, Newton, Massachusetts
Rates will drop a tad. However, if you are currently in a transaction, please lock the rates, as they can potentially increase -- though I believe they will drop.
Assistant managing editor, Bankrate.com
It seems that mortgage rates have been falling since biplanes ruled the skies. In fact, it's been only 5 weeks. But it's rare for rates to fall more than 4 weeks in a row: It never happened last year, and it happened 3 times in 2014. Here I am, predicting that rates will fall for 6 weeks in a row, because momentum, baby!
Greg McBride, CFA
Chief financial analyst, Bankrate.com
Financial markets are on edge and global economic uncertainty remains high, so mortgage rates keep falling. A strong jobs report could stall or reverse this, but anything less will only further feed concerns about a slowdown.
CEO, Arcus Lending Inc., San Jose, California
Crude oil levels have taken a life of their own, with domestic and global markets completely fixated on price. Also, chances of the Fed increasing the rate in the first half of 2016 is out the window. Most benchmarks are pointing toward flight to safety for investors, which should bolster mortgage-backed securities and result in lower rates for consumers.
Vice president of capital markets, CMG Financial, San Ramon, California
Markets continue to push rates further down as the global economy is hitting rough spots on both the domestic and foreign fronts. This is great news for any borrower still looking to refinance or purchase a home. Struggles across European and Asian nations have most economies looking to loosen policy, while domestically the Fed may have tightened prematurely. Many believe that this is putting the Fed in a tight spot and there is a chance that they do not raise rates for the remainder of the year. This could push mortgage rates past recent lows, as the 2016 prediction was that rates would be increased roughly 4 times. Oil continues to be the biggest mover in the stock market even as we move through earnings season, while China is on everyone's radar as its politicians look for ways to prevent a "hard landing" after several years of economic growth.
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