Mortgage Rate Trend Index Unchanged: June 23, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
With the Brexit vote not until June 23, and its results not available until the next day, it's hard to say what rates will do in the coming week. A big part of the rally in rates last week was a result of the polls showing that those voting to leave the EU were surging ahead of those voting to remain in the EU. This week, the polls reversed and that was a big reason rates increased. Not knowing the result, I am going to say that rates will stay the same in the coming week. But beware: The results of this referendum could have a large effect on rates.
Senior loan officer, AMC Lending Group, Irvine, California
For many years, I have stressed that the bond market has a key level of 1.60% that has held up for many years. Last week, we tested that level with a close of 1.56%. However, the next trading day (which is always crucial on the key technical areas) had low level print of 1.52% and then a strong reversal in yields and now today on Tuesday we have a 1.70% basis point print on 10's. This means, once again, the bond market has held up on this key level and mortgage rates still haven't had the chance to test the 2012 lows which was created by the fear of Spain defaulting on its debt.
Key levels now: 1.56% level on the downside; if 1.70% breaks, we can test the 1.90% area. Watch for the Bret exit vote to see if we get any action there.
President, Americana Mortgage Group, Manhasset, New York
Rates are flat.
Loan officer, Macoy Capital Partners, Los Angeles
The 10-year Treasury has bumped up to 1.71%, which has surprised me, but I do think it is just a bit of a bounce back from last week. The Fed will continue to be cautious, and as I have said before, I do not expect to see any rate increases anytime this year.
Mortgage planning specialist, Highlands Residential Mortgage, Dallas
Last week following the Fed statement, the bond market had a nice rally and rates improved. It was short-lived. Rates are off the best levels, but are still phenomenal. I don't see any opportunities for improvement in the coming week. Mortgage bonds are currently trapped within a small window and I expect the sideways pattern to continue.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
A better response would be unknown. The biggest plate on the table this week is Brexit. A vote either way can have a big impact on rates, both higher or lower. Global markets are reacting to each poll release but it appears too close to call. As to addressing what the impact of a vote either way will do to our mortgage market, all we can do wait and see. In England though, they are saying a vote for Britain to leave the EU will move rates higher there.