Mortgage Rate Update June 27, 2016

Unless you live under a rock you are aware of the outcome of Britain’s vote on Thursday last week.  The ripple effect of “Brexit” continues to reverberate through the markets this morning and US interest rates are benefiting.

The S&P 500 is off 5.4% from Thursday and the yield on the US 10-year treasury has fallen from ~1.8% on Thursday down to ~1.45% today.  Mortgage rates tend to track changes to the US 10-year treasury yield.

Although Britain is only the 7th largest trading partner for the US a “Brexit” is causing the US dollar to strengthen which will likely drag down economic growth.

Looking ahead the economic calendar for the week gets busy starting tomorrow with GDP and the Case Shiller Home Price Index report.  On Wednesday we’ll get the most recent inflation figures.  For now we’ll continue to float and see if rates improve further.

Current Outlook: floating