Mortgage Rate Trend Index Unchanged: April 19, 2017
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
To the surprise of many, the dip in mortgage rates continued this week. Mortgage rates are now at the lowest levels for 2017. The question is will this rally continue, or will rates quickly revert to the higher levels of just a few weeks ago. Economic data over the last few days has been weaker than expected, with the Consumer Price Index actually showing a decline in prices, Retail sales dropping for two consecutive months, and the Empire State Manufacturing Survey coming in much lower than expected. Industrial metals are also dropping in price as markets are seeing a slowdown in economic growth in China in the coming months. When you add geopolitical concerns on top of these economic concerns, it's easy to see why rates have dropped. Looking forward it's hard to see rates dropping further in the coming week. But if first quarter GDP disappoints next Friday, this drop in rates could have further to go.
Vice president, Northpointe Bank, Holland, Michigan
We saw a bit of improvement in mortgage interest rates over the last week, and now sit at the lowest level seen in 2017 (and since November 2016), making this an ideal time to lock into an interest rate. Global uncertainty – French elections, Brexit, North Korea tension – benefits the bond market (where mortgage interest rates are derived) as investors look for some certainty with their funds. It would be prudent to secure a rate lock now to take advantage of the gain and avoid future volatility and uncertainty. Contact your local mortgage professional today to see how you can take advantage of interest rates at this level, whether you're looking to buy, build or refinance.
Senior loan officer, AMC Lending Group, Irvine, California
As I talked about last week, the key channel of 2.27 percent to 2.62 percent, which has stuck the entire year, was going to break because of the macroeconomic backdrop last week -- and that is what happened. 10-year yields fell below 2.27 percent and got as low as 2.18 percent this week. So a 1-handle on 10's is in play. If the 10-year can close below 2.15 percent then watch out, yields can really fall, so keep an eye out on that level. However, for now, some consolidation here.
President, Americana Mortgage Group, Manhasset, New York
Rates are flat.
CEO, Arcus Lending Inc., San Jose, California
Mortgage rates trended lower last week because of political uncertainty around North Korea, Syria, Russia and France. Some of the volatility has calmed. In light of that and a week with very little critical economic news, we should have a calm week for mortgage rates. Changes if any (for good or bad) will not be significant.