Mortgage Rate Trend Index Unchanged: July 2, 2015
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Mortgage rates have been very volatile lately -- rising sharply last week, falling at the beginning of this week only to reverse course and head higher on Wednesday. The reason for all of the volatility? Greece. Last week, markets were convinced a deal was going to be done to keep Greece in the EU. Then over the weekend, Greece's prime minister announced a referendum that would allow Greece's citizens to decide whether to accept the deal being offered by Greece's creditors, raising doubt over whether a deal would be completed. Now, markets are again betting that some deal will get done based on a letter the Greek prime minister sent to the EU. With so much riding on Greece, it seems as if markets are less focused on U.S. economic data. At this point it's hard to predict the outcome out of Greece, so I'm going to vote for rates holding steady in the coming week. But remember, there could be a lot of volatility in the day-to-day movement of mortgage rates. My best advice for borrowers is to lock your rates in as soon as you can.
Sales manager, Fairway Independent Mortgage, Silverdale, Washington
A herculean swing and a miss by the ECB and Greeks causes rate relief. Wow! Stocks are higher and mortgage bonds are sharply lower on hopes of a potential deal in Greece. However, Monday was a fun day in the world of mortgage rates, where we saw a big bounce in the form of improvement, all due to the drama in Greece and the mass exodus from markets overseas to U.S. bonds and the German bund. We are floating now with a jobs report out later today. MBS Highway announced mortgage applications decreased by 4.7% from the previous week. This should affect the multiple-offer syndrome going on in many housing markets.
Senior loan officer, RPM Mortgage, San Francisco
The U.S. economy is still seeing slow growth, making a Fed hike less certain. Average annualized GDP growth for the past 13 quarters is 2.37%. Uncertainty translates into volatility. We should see some safe-harbor buying of U.S. Treasury debt consequent to Greece, but I have no idea if this will translate into lower home loan rates.
President, Americana Mortgage Group, Manhasset, New York
Rates are flat.