Mortgage Rate Trend Index Up: Jan. 22, 2015
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
The decision by the European Central Bank regarding their version of quantitative easing will go a long way in determining the direction of interest rates over the next week. If the ECB moves forward with QE, as the market expects, then I think stocks will rally and bonds will sell off, leading to higher yields and higher mortgage rates. If the ECB disappoints markets and doesn't announce QE or they announce a smaller version of QE than markets are hoping for, then I think stocks will sell off and bonds will rally, leading to lower yields and mortgage rates. I doubt the ECB will disappoint markets after talking about QE for months, so I expect higher mortgage rates in the coming week.