It’s a slow start to the week with the markets closed in observance of President’s Day. Mortgage rates have been on the rise for the past several weeks, and there’s definitely the possibility that trend will continue over the next few days. If you’re thinking about a home purchase or refinance, it certainly makes sense to at least consider locking in a rate soon. Read on for more details.
Where are mortgage rates going?
Rates are flat as we start the week on a holiday
It’s President’s Day in the United States, and that means that the markets are closed. This is keeping mortgage rates, which largely fluctuate in response to the bond market, flat.
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Mortgage rates have been on a bit of an increase the past several weeks, with the average rate on a 30-year fixed rate mortgage moving up forty-three basis points from the start of the year, putting it at 4.38%.
There is no doubt that this increase is significant. It’s a big change from the mortgage rate environment last year, where rates remained in a very tight range throughout the year.
Now, with inflation ticking up and the Federal Reserve getting ready to continue their gradual adjustments to the federal funds rate, we’re seeing this very steady upward swing in rates.
The obvious question that arises out of the present situation is: when will rates stop rising? An easy question to ask–a harder one to answer with a large degree of confidence.
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Mortgage rates are incredibly fickle, with a multitude of varying factors that all impact when and where they move. However, what we can say is that the general consensus is for rates to continue rising throughout 2018.
As previously stated, inflation is up and the Fed is tightening monetary policy, two things which tend to put upward pressure on mortgage rates. While the general trend for mortgage rates seems fairly clear, it’s much more difficult to drill-down into the details and pick a clear target for where rates will be in three, six, and twelve months from now.
We have gotten multiple calls (Mortgage Bankers Association and Realtor.com) for the 30-year fixed rate to hit 5% at some point this year. When you look at the possibility of rates over 5%, current mortgage rates begin to appear more appetizing.
Rate/Float Recommendation
Lock in a rate soon
Mortgage rates are on the rise and expected to move even higher. If you’re on the hunt for a new house or are trying to refinance your current mortgage, our recommendation is to lock in a rate sooner rather than later.
Learn what you can do to get the best interest rate possible.
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Today’s economic data:
- Nothing: markets closed in observance of President’s Day.
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Notable events this week:
Monday:
- Markets Closed: President’s Day
Tuesday:
- Nothing
Wednesday:
- Fedspeak
- PMI Composite Flash
- Existing Home Sales
- FOMC Minutes
Thursday:
- Jobless Claims
- Fedspeak
- EIA Petroleum Status Report
Friday:
- Fedspeak
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from Total Mortgage Blog http://ift.tt/2HsbTJY
via Zero Mortgage Insurance
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