LOW RATES FOR THE IMMEDIATE FUTURE
Here is some interesting information from our friend in the mortgage industry:
Theresa Flores
New Penn Financial, LLCSales Manager
NMLS# 224745
(210) 318-2750 x 12801
tflores@newpennfinancial.com
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.
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