Mortgage Rates June 27, 2017

Mortgage rates are starting off the day a bit worse than yesterday as the bond market faces some selling pressure after some comments made by Mario Draghi yesterday (which were not bond friendly).  Essentially he hinted that the ECB might be ready to end it’s EuroZone stimulus plan as he believes the European economy is headed in the right mortgage interest ratedirection.  This has caused the 10y yield to open the day at 2.18% level and the Fannie Mae 3.5 coupon is at 103.11 level.  Not huge moves in the grand scheme of things but it’s the biggest opening move we’ve seen in weeks.

Some lenders that are aggressive may still offer their best mortgage rates however cautious lenders will worsen their rates to avoid trying to play catch up if the bond market starts to selloff further.  Even if the 10y yield moved to 2.20% I wouldn’t be too concerned as this is still within the range we’ve seen over last month.  A move above 2.24% would be a bit worrisome so we’ll keep an eye on that if the bond market sells off further.  Mortgage lenders are still experiencing below average volume as we enter the summer months.  Because of this you might see the overall market be a bit more aggressive than usual when it comes to mortgage rates and lender guidelines.

This morning we had the CaseShiller home price index for 20 metro cities and that came in a bit weaker than expected.  However the Consumer Confidence reading came in a bit stronger than expected and this is adding a little bit to the selling pressure in the bond market.  Later today there is a Q & A with Janet Yellen and we’ll update the post if there are any details that may affect mortgage rates.

If you are looking to refinance your current mortgage or purchase a new home please contact us directly for a no cost – no obligation quote.  We offer industry low mortgage rates and top notch customer service.  Our direct number is 1-800-550-5538.

UPDATE:

Janet Yellen’s Q & A per Reuters:

RTRS – FED’S YELLEN SAYS DOES NOT BELIEVE NEXT FINANCIAL CRISIS WILL BE IN ‘OUR LIFETIMES’

RTRS – FED’S YELLEN SAYS PRODUCTIVITY GROWTH HAS BEEN SLOW

FED’S YELLEN SAYS NUMBER OF REASONS TO BELIEVE INTEREST RATES WILL REMAIN LOW AS WE NORMALISE POLICY

RTRS – FED’S YELLEN SAYS WE INTEND TO VERY GRADUALLY AND PREDICTABLY TO SHRINK OUR BALANCE SHEET