LOW RATES FOR THE IMMEDIATE FUTURE
Here is some interesting information from our friend in the mortgage industry:
Theresa FloresNew Penn Financial, LLC
(210) 318-2750 x 12801
The yield on the 10-year U.S. Treasury note continues to hang near 2%. Not surprisingly, the 30-year fixed-rate mortgage continues to hang below 4%. As we mentioned last week, 2% on the 10-year note gets us sub-4% rate quotes on the 30-year loan.
Given the way the stock market has performed to start 2016, we expect mortgage rates to hold these lows for some time. Many investors are wary of stocks; wary investors take refuge in Treasury securities. The money that flows into these securities raises their price and lowers their yield. Because mortgage bonds take their cue from Treasury securities – the 10-year note in particular – investors are willing to accept lower-rate mortgages.
But low rates will remain in a precarious state. A big bounce in the stock market could easily lead to a big bounce in mortgage rates. If you think now is the time to buy, visit our website and start house hunting.