Mortgage Rate Trend Index Up: Feb. 15, 2017

Will rates go up, down or remain unchanged?

  • Michael Becker

    Michael Becker

    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.

  • Shaun Guerrero

    Shaun Guerrero

    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

    Greg McBride, CFA

    Chief financial analyst,

    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.

  • Katy Parsons

    Katy Parsons

    Mortgage originator, Finance of America Mortgage, Portland, Oregon

    Trending higher.

  • Dick Lepre

    Elizabeth Rose

    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.

  • Shashank Shekhar

    Shashank Shekhar

    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.


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