Mortgage Rates June 28, 2017

Mortgage rates for June 28th will start the day off a bit worse than yesterday as the bond market continues to sell off and yields push higher.  The 10y yield opened the day at the 2.23% level which is at the higher end of the range we’ve seen over the last month.  It appears the primary influence to yesterday’s sell off in bonds was caused by the sell off mortgage interest ratein European bonds after the comments made by Mario Draghi. Later in the day Janet Yellen conducted a Q & A and most of her statements were bond friendly.  As we move further into the day we’ll keep an eye on this level in the 10y yield.  A significant/sustained break above 2.23% – 2.24% would be a bit of concern.

For the most part mortgage rates are still near their 2017 lows so now is a great time to refinance your current mortgage or purchase a new home.  Speaking of home values, they have continued to increase and those that put less than 20% down and have Mortgage Insurance (MI or PMI) attached to their payment might want to see if they can get rid of that added extra expense with a refinance.  30 year fixed mortgage rates are still below 4.00% and 15 year fixed mortgage rates are still below 3.25%.

Both the Mortgage Purchase and Refinance indexes came in weaker than expected this morning and later today we have Pending Home sales and a few auctions that might influence the market.  We’re also keeping an eye on oil as it remains below the $50.00 level which is a deflationary red flag for the economy.  Mortgage rates are not directly affected by moves in the oil market (unless they are overly dramatic) however the market can be a useful indicator of the economy so therefor it’s important to follow since a weaker economy generally brings low rates and a stronger economy generally brings higher mortgage rates.

If you are considering a refinance of your current mortgage or looking to purchase a new home please be sure to give us a call at 1-800-550-5538.  We offer a no cost – no obligation quote, have industry low mortgage rates and top notch customer service!