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Mortgage Rates Edge Lower to Remain in Recent Range

Mortgage rates rose to the week’s highest levels yesterday, but they moved back down today.  Although there have been slightly better days over the past 2 weeks, today’s improvement is enough to keep rates in the best territory since November 2016.  For the average lender, this means top tier scenarios continue to see quotes in the high 3% range. 
In general, the expectation for more accommodative Fed policy at the next meeting (end of July) has been the primary source of inspiration for the most recent leg of 2019’s already-impressive rate rally.  It’s good to remember, however, that those expectations come from somewhere.  No one would expect the Fed to cut rates if inflation was higher, a US/China trade deal hammered out, or economic data coming in universally stronger.  While it’s practically impossible for all of those underlying factors to reverse course overnight, there is a risk that something positive comes out of the G20 summit in the next 2 days and that next week’s economic data comes in much stronger than expected.  Bottom line: there continues to be a risk of a bigger move and more volatility ahead….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed

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