Mortgage Rate Trend Index Unchanged: Oct. 19, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
This week we have seen mortgage rates pause after rising for the last 2 weeks. Janet Yellen, Federal Reserve chair, gave a speech in Boston last Friday where she suggested using monetary policy to run the economy hot. That is allowing the rate of inflation to exceed the Fed's mandated level for a period, in order to reverse any lingering effects of the Great Recession. Markets took this to mean the pace of interest rate hikes may be slower than previously anticipated. I think this is the reason for the pause in mortgage rate increases. Hopefully, this pause will continue in the coming week. I think it will and that rates will be flat, but the path of least resistance is for higher rates in the coming months.
Senior loan officer, RPM Mortgage, San Francisco
The Treasury techs are all bearish (lower prices, higher yields and rates) but the daily is trying to upcross to bullish, which would give some relief. This is likely to happen in the following week.
Assistant managing editor, Bankrate.com
The outcome of the election seems almost a certainty, and mortgage rates should be relatively stable until the aftermath.
Senior loan officer, AMC Lending Group, Irvine, California
So, we had a clean break of the major key technical line on the 10-year. However, today's print of 1.75% shows that 10's don't want to run away just yet. Key to remember, global yields are rising and commodities are up this year. Inflation is picking up headline just due to the oil rebound. We will see the year-over-year prints more aggressive next year on headline inflation.
President, Americana Mortgage Group, Manhasset, New York
Rates are stable.
Branch manager, Movement Mortgage, Dallas
Inflation data showed us once again, core inflation still has no legs and sits well below the Fed target. That is bond-friendly news. Bonds reacted to the news with a small little bounce off support levels. From here, I believe we may see some continued improvement and may test 103.5, which bonds have only managed to climb above 3 times in the past year. Most likely bonds will stop at this level, but it does allow for a slight improvement from current pricing, but so slight it is doubtful that any improvement to rates will be noticeable.