Mortgage Rates For June 6, 2017

We’re starting off the day in positive territory as the bond market rally’s after yesterday’s action.  Mortgage rates for June 6, 2017 should remain very attractive and remain at 2017 lows.  The 10y yield opened the day below 2.15% (in pre-market action it hit below 2.13%) which is at level last seen in November 2016.  Lenders remain aggressive mortgage interest ratewith mortgage rates as overall loan volume for most lenders remains below normal.  After very little economic readings yesterday; today we have even less….there are no major economic reports due out today.  So if the 10y yield continue to rally today; and pushes below 2.12/2.10 level that will be a great move on a day absent of any major reports.

One thing we need to keep an eye on is Washington; and more specifically the Comey testimony later this week.  As mentioned in previous posts, news out of Washington will play a prominent role in the bond market in the coming months.  There were “rumors” that President Trump was going to block Comey from testifying (executive privilege) however many believe that will not happen.  In fact the NY Times claims the administration has decided not to do that so on Thursday Comey will sit in front of the Senate and answer questions.  We’ll also be keeping an eye on oil; lately it’s been trading below $50 which is good for bond yields and mortgage rates.

Do you want to refinance your mortgage or purchase a new home? Considering we are seeing 2017 lows it’s a good idea to consider locking in terms sooner rather than later.  There is no certainty that the market will move lower and if the market does reverse course, and rates move higher, it could happen very quickly.  There have been several occasions where the market reverse coursed and in a matter of days we have seen rates go up .25% – .50% which can cost a borrower thousands of dollars in interest.  However when market’s are improving it generally takes a lot longer, sometimes months, to see significant improvements.  If you have any questions or would like a quote please contact us directly at 1-800-550-5538.