Happy New Year! 77% of US citizens set financial goals for their new year’s resolutions. Did you? Unfortunately only 1 in 5 are able to see their resolutions through February.
I hope 2019 brings you good health and prosperity!
Interest rates start off the new year at the best levels since the spring of 2018. Weakness in the stock market helped mortgage rates improve during the final two months of 2018.
A look at the chart of the US 10-year treasury note, which mortgage rates tend to follow, shows that yields fell from 3.22% at the beginning of November to 2.55% on January 2nd. During that time home loan rates improved by .50%.
Currently the US 10-year treasury note is at 2.70% which is right up against the two month trend line.
Should yields bounce lower off this trend line then mortgage rates are likely to improve by another .125%-.25%. However, if the yield closes above 2.70% then I expect rates to move higher.
Most Wall Street Analysts believe that yields will increase by .50%-1.00% during 2019. Therefore, I think the best buying opportunities will exist in the initial three to four months of the New Year!
Current Outlook: locking bias