Mortgage Rate Trend Index Up: May 24, 2017
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Treasury bond yields and mortgage rates are drifting higher this week. I think this is because of two items. First, this week there are several Treasury auctions and that additional supply of bonds tends to put upward pressure on yields and rates. Second, the minutes of the most recent Fed meeting are going to be released. Markets will be looking for clues as to when the Fed may start to unwind its balance sheet. If the Fed mentions that unwinding in its minutes, as I think they will, we will see higher rates in the coming week.
Assistant managing editor, Bankrate.com
The long-term trend toward higher interest rates will reassert itself. The Federal Reserve will continue to raise short-term rates, and in December it will start shrinking its balance sheet. That will send mortgage rates higher, sooner or later.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
Markets may be whistling past the graveyard but as the effect of political risk fades and eyes shift to the Fed, mortgage rates will rebound.