Mortgage Rate Trend Index Up: July 26, 2017
Will rates go up, down or remain unchanged?
President and Chief Economist, Naroff Economic Advisors, Holland, PA
The Fed is going to start reducing its balance sheet eventually, so despite the chaos in Washington, the trend should be up, though very slowly.
Branch Manager, Movement Mortgage, Dallas
Investors sold off safe haven bonds yesterday which pushed rates higher. Today the FOMC meeting comes to an end and the Fed will give its statement. There is almost no expectation of a rate hike coming from this meeting, although investors will be listening closely to the minutes for any clues of future rate hikes and the tapering of its balance sheet. Bonds could get slightly worse from here, but the good news is there is a nice floor of support just below.
Vice president of capital markets, CMG Financial, San Ramon, California
The battle involving the country’s debt “ceiling” is starting to heat up, and based on current gridlock in Washington, we could see a battle in which the markets become the ultimate loser. The Fed is still pushing to start their balance sheet unwind by year end and has shown less attention to future rate hikes, both of which may or may not be defined in today’s meeting notes. Both existing and new homes sales have disappointed causing a slip in home builder confidence, noticeably this did not seem to be caused by the typical rate and affordability issues.