Mortgage Rate Trend Index Unchanged: July 27, 2016
Will rates go up, down or remain unchanged?
Assistant managing editor, Bankrate.com
The Federal Reserve reiterated that short-term interest rate increases will arrive gradually. Meantime, it's reinvesting principal payments from its vast reservoir of mortgage-backed securities into more mortgage-backed securities. That strengthens the gravity that keeps mortgage rates from going aloft.
Senior loan officer, AMC Lending Group, Irvine, California
Wednesday pricing 1.54% on 10-year Treasury yields. Until we break above 1.64%, no higher rates coming and the channel is between 1.34% and 1.64%. The Fed will speak today and we will see what happens. However, not much going on unless we break above 1.64%.
President, Americana Mortgage Group, Manhasset, New York
Rates are stable.
Mortgage planning specialist, Highlands Residential Mortgage, Dallas
Following the Fed statement, mortgage bonds enjoyed a nice rally. Now, back over a level which, if it holds, will act as a support level. With this, bonds will be trapped in a narrow window between support and resistance, and will likely trade sideways. We have a few high-impact economic reports in the week ahead, however I expect this narrow range to hold.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
The Federal Reserve met this week. Following Brexit, there has been a lot of concern on the direction of global and U.S. economies. The Fed really had no decision to make today other than to not move. Any move this year would be surprising, but in the meantime, look for rates to remain favorable for the next week. Keep in mind, though, the Federal Reserve doesn't change mortgage rates.
If we get a strong employment report next week, we may have seen the best rates of the year. If you are wanting to refinance, I would get moving.