Mortgage Rate Trend Index Down: May 26, 2016
Will rates go up, down or remain unchanged?
Loan officer, Macoy Capital Partners, Los Angeles
The 10-year Treasury is trading at 1.85%, today which is exactly where it was when I wrote 11 weeks ago on March 2. During that time, we saw the 10 drop down to about 1.72% and now all the way back up. The Fed recently made the announcement that they are looking at the metrics carefully for a June increase and that spooked the market a bit. The truth is that is what they always do and should be doing before considering any rate increases or decreases. In my opinion, the Fed will take a look at the global market, as well as the U.S., and decide not to change rates in June. When that happens, the 10-year will tick back down to about 1.70% and mortgage rates will fall, too.