Mortgage Rate Trend Index Unchanged: Sept. 20, 2017
Will rates go up, down or remain unchanged?
Senior loan officer, RPM Mortgage, San Francisco
The daily tech is bearish (lower prices, higher yields) but may reach the end of this cycle in this coming week. The weekly is bullish. Let’s call the coming week flat with hopeful signs for lower yields the week after. The general picture is of a market not moving much in either direction.
Senior loan officer, AMC Lending Group, Irvine, California
Fed Day Wednesday morning 10-year yield pricing 2.23% and the lower highs and lower low story is still intact for 2017. However, as always the Fed language is key short term and balance sheet reduction will be at a snail’s pace. Look for inflationary data over the next few months to move up due to the Hurricanes and see if the bond market doesn't bite on that data.
Loan officer, Macoy Capital Partners, Los Angeles
The 10-year is currently trading at 2.23% which is up from its recent low of 2.05% just under 2 weeks ago. While I did not expect treasuries to bump up I fully expect rates to trade in a tight range between now and the end of the year. There is an interesting phenomenon right now that I think has the Fed puzzled; as the economy continues to improve and they unwind their balance sheet they expected it would push rates up a bit but the exact opposite has happened. Not the 1st time the Fed had it wrong.
Branch Manager, Movement Mortgage, Dallas
The Fed completes its two-day meeting and it is anticipated the Fed will provide insight to the timing of the unwinding of its balance sheet. An October start date has likely been priced into the markets already which would mean very little reaction in the mortgage bond market. Currently mortgage bonds are pretty quiet and holding steady on a solid support level. Provided no big surprises from the Fed, mortgage rates should continue to tread at current levels.