Mortgage Rate Trend Index Down: Dec. 7, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
The direction of mortgage rates over the next week will depend heavily on whether or not the European Central Bank or ECB decides to extend its bond buying program, or QE. That decision comes out a day after this vote is cast. As of now markets are pricing in an extension of this program. If the ECB disappoints markets we could see another spike in mortgage rates. I think the ECB is aware of this and will announce an extension of its QE. This should lead to a small drop in mortgage rates in the coming week.
Senior loan officer, RPM Mortgage, San Francisco
This is an odd situation. The Federal Open Market (Committee) meets next week and a rate hike is highly likely. However, this has already been priced into the Treasury markets. The daily tech is very bullish (higher prices, lower yields) and should drive rates down slightly in the coming week.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
Leading into an expected interest rate move by the Fed next week, long-term rates could dip as often happens when the Fed is actively raising rates.
Branch Manager, Movement Mortgage, Dallas
The bond market has been like a seesaw on the playground lately. Up and down. For the coming week, there is very little economic news on the calendar until Wednesday. In looking at the charts, bonds are "seesawing" in a wide range and attempting to advance on some positive gains. However, bonds will likely get stopped at the 103 level. Even so, it allows for improvement from our current level, which would translate to a minor improvement in mortgage rates.