Mortgage Rate Trend Index Up: Feb. 15, 2017
Will rates go up, down or remain unchanged?
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
Mortgage rates have been on the rise since President Trump promised big tax cuts last week. With Fed President Janet Yellen saying it would be a mistake for the Fed to wait too long to raise rates, and inflation coming in higher than expected this week, it's not surprising to see rates continue to rise. It will take some negative economic news for this trend to reverse, and because of that I think rates will be higher in the coming week.
Branch manager, Alterra Home Loans, Silverdale, Washington
All this "Yellen" with nothing positive to say! Fed Chair Janet Yellen's commentary on the Feds outlook when it comes to rates because they're not positively impacting the mortgage bond market. Simply put, rates worsening as a result and it would be advantageous for you if you were going to be closing in the next three weeks to lock your home loan.
Greg McBride, CFA
Chief financial analyst, Bankrate.com
The economic fundamentals are solid -- consumer spending and job growth most notably -- and inflation is picking up. Janet Yellen knows that waiting too long to raise interest rates would be 'unwise.' All signs point to an increase in mortgage rates.
Mortgage originator, Finance of America Mortgage, Portland, Oregon
Branch Manager, Movement Mortgage, Dallas
Mortgage bonds have changed direction from last week. Janet Yellen sent mortgage bond into a nosedive Wednesday, causing prices to move lower and mortgage rates higher. Yellen spoke on the progress of the economy and said it would be "unwise" to delay hiking interest rates. She stated the Fed wants to get the balance sheet down (by way of security reinvestments), but won't start until interest rates are higher. Adding fuel to the fire on higher mortgage rates, CPI (inflation data) has spiked higher and was the fastest rise in four years. Inflation is the arch enemy of bonds. With improving economic data and higher inflation, we can expect higher rates.
CEO, Arcus Lending Inc., San Jose, California
Strong retail sales and higher inflation are increasing the likelihood that the Fed will move the rates up in March. Most technicals at this point are turning bearish for mortgage-backed securities, which could result in higher mortgage rates for the borrowers.