Mortgage Rate Trend Index Down: Nov. 26, 2014
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Once again this week I am surprised at how mortgage rates are getting slightly better despite good economic news and the stock market hitting one all-time high after another. Rates tend to rise as the stock market rises, but that is not happening lately. I think the yields on other countries' sovereign debt is keeping the yield on the 10-year Treasury lower than it would be otherwise. Spain, for example, a country with over 23 percent unemployment, has a 10-year yield below 2 percent. I think that makes U.S. debt more attractive by comparison and is proven out by the strong Treasury auctions of this week. Because of this, I expect mortgage rates to drift lower in the coming week.
President, Independent Mortgage, Newton, Massachusetts
Rates will improve!!! The European market is a complete mess and will help bonds and help with the dollar. We may just see the best rates in 2014 yet, with some luck.
Assistant managing editor, Bankrate.com
Rates are falling gradually. Why? It's a mystery. But that's the short-term trend, so who am I to argue with it?