Mortgage Rate Trend Index Down: July 20, 2016
Will rates go up, down or remain unchanged?
Mortgage specialist, The Mortgage Connection, Madison, Mississippi
Mortgage rates held strong this week. We are now seeing gas hit its lowest prices in nearly a decade. This is typically not favorable to investors. On the other hand, the stock market is on a good run. I do believe there is some room for pullback there, though. With gas prices going down, bonds are always a good place to park money. As a result, I believe we will see rates decrease slightly in the near future. If you are in need of a mortgage, jump in on these low rates!
Senior loan officer, RPM Mortgage, San Francisco
The techs do not offer a single clear message. The daily is bullish (higher prices, lower yields), the weekly is just barely bearish, and the monthly is bullish. Just a hint of slightly lower Treasury yields.
Assistant managing editor, Bankrate.com
Fed officials are implying that another rate hike might come this year. They seem out of touch. And on Tuesday, the theme of the Republican convention was supposed to be about the economy and jobs, yet no concrete plans were advanced about improving the economy and creating jobs. These events are disquieting. I'm sure I'm in the minority here, and that most observers believe that Treasury yields and mortgage rates have bottomed out and are beginning to float upward. But I feel pessimistic. The Fed is asleep, the Republicans won't talk about the economy, and many investors won't like what the Democrats will prescribe for the economy at next week's convention. Turkey is in turmoil, Russia will lash out in some way if it's banned from the Summer Olympics ... it's a bummer of a summer, and I believe widespread chagrin will push rates lower.
Vice president of capital markets, CMG Financial, San Ramon, California
Economic news has leaned toward the positive side over the past week, but a retreat in oil and continued global economic pressures have bond markets seeing improvements, which is suppressing mortgage rates. Applications remain strong even as housing prices continue to see gains, which is all being fueled by the strong decrease in mortgage rates over the past few weeks. The summer purchase market is in full swing and loan volume will remain elevated through most of the 3rd quarter and possibly farther, especially if the Fed chooses not to raise rates by year end.