Mortgage Rate Update June 13, 2016

Posted on by Evan in Rate Update, Swanson Home Loans Blog - Mortgage Rate Updates and More

Mortgage rates remain at multi-year lows.

 

Britain’s referendum to exit the Eurozone or remain is scheduled for June 23rd.  This vote has been scheduled for many months but has flown under the radar here in the US because most of the polling has suggested a likelihood for the status quo.

However, this past Friday a fresh poll was released that showed a majority of Brit’s opting to “Brexit” the Eurozone (EU).  How might this impact US mortgage rates?

Britain's vote on June 23rd is likely to influence mortgage rates here in the US.
Britain’s vote on June 23rd is likely to influence mortgage rates here in the US.

Should Britain depart the EU it makes the possibility of other members exiting more likely.  For example, apparently Netherlands has already formed a coalition of citizens who would like to push for a “Nexit”.  The bottom line is that a “Brexit” will cause uncertainty and likely pressure mortgage rates lower in the near terms due to a “flight-to-safety” on the part of investors.

The economic calendar is fairly full this week.  The Fed is scheduled to meet tomorrow and Wednesday.  Following May’s weak employment report there is virtually no chance the Fed will raise short-term interest rates.  However, their comments can always move the markets.

We’ll also get more current readings on retail sales, inflation, manufacturing, and housing construction.

I recommend floating for now.

Current Outlook: floating