Mortgage Rate Trend Index Up: May 19, 2016
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Mortgage rates unexpectedly spiked the last few days. It started with 2 Fed presidents giving speeches saying the June meeting was "live" for a rate increase on Tuesday, and continued with the release of the Fed minutes on Wednesday. Those minutes showed that most Fed officials saw a June rate hike "likely" if the economy warranted it. This should put continued pressure on mortgage rates in the coming week as the market prices in an increased chance the Fed raises rates at its June meeting.
Branch manager, Academy Mortgage, Yuma, Arizona
The slight market weakness in bonds is the result of the equity markets continued strength. Look for rates to continue to slide higher.
Branch manager, Alterra Home Loans, Silverdale, Washington
Fed comments causing a backlash worse than imagined. I advise you to lock your loan.
Senior loan officer, RPM Mortgage, San Francisco
The daily stochastic should turn bearish (lower prices, higher yields) and be in harmony with a bearing weekly tech. Look for higher Treasury yields and home loan rates in the coming week.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
The Fed's jawboning about a possible June rate hike has picked up, and markets are nervous about it.
CEO, Arcus Lending Inc., San Jose, California
Mortgage-backed securities are under serious pressure as oil price continues to rise and bond trader sentiment is beginning to shift toward a June rate hike. The Fed meeting minutes are also indicating a June rate hike. All this means higher mortgage rate for consumers in the coming weeks.
Vice president of capital markets, CMG Financial, San Ramon, California
The Fed is again threatening to raise rates in June given that it feels the economy is strong enough based on current data. Most believe the data is too mixed and that outside factors will ultimately lead the Fed to hold off on the increase. Should an increase occur, many are unsure of the effect on rates as the December increase caused a decrease in mortgage rates.
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