Mortgage Rate Trend Index Down: April 28, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
The Fed's statement after its April meeting had a dovish tone to it. Markets were expecting the Fed to keep rates where they were, but many market participants expected a more hawkish statement that put a June rate hike back on the table. Specifically, the Fed removed their comments about global economic developments posing risk, while stating that they will "closely monitor … global economic and financial developments." The dovish tone is highlighted in their comments regarding how "growth in household spending has moderated" and "business fixed investments and net exports have been soft." Because of this dovish statement, many are thinking that a June rate hike is now off the table. This will keep rates from rising, and in fact we should see slightly lower rates in the coming week as a result of this statement.
Assistant managing editor, Bankrate.com
Imagine that you have a kid who just can't run fast. Your kid is standing at the starting line at an elementary school track meet, and you know the tyke doesn't have a chance of winning. But you shout words of encouragement anyway. That's sort of how the Fed talked about the economy in its latest monetary policy statement. The economy is trying its darndest, but c'mon -- the Fed isn't going to raise short-term interest rates anytime soon.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
The Fed didn't raise interest rates and offered no indication that a hike is in the offing, so mortgage rates will reverse much of the run-up over the last week.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
Rates took a bit of a hit heading into Fed Week and that might leave some asking, "Uh, why?" While there could be many reasons, one is while we know the economy isn't gaining strength -- which would cause rates to rise -- it wasn't gaining much strength the last time the Fed raised rates, either. Look for rates to improve modestly from here.
Vice president of capital markets, CMG Financial, San Ramon, California
Rates had been inching up over the past week but are prime to decrease based on the Fed announcement. Many believe that they may hint at a possible interest rate increase at the end of Q2 or beginning of Q3, but with no press conference and no updated economic forecast, markets will have to rely on interpreting the words of the release. With this being the case, the Fed cannot risk an incorrect interpretation by markets and will most likely be extremely conservative and vague with their notes. Japan and Europe continue to give our central bank the jitters and is forcing them to remain neutral with almost all policies, as any change could significantly disrupt markets.
Get today's mortgage interest rates and information on recent rate trends today.