Mortgage rates are essentially unchanged at multi-year low levels.
In-out-in-out-in-out…..A week ago I wrote (HERE) about how a poll released over the weekend had indicated a majority of British citizens favoring a “Brexit” from the European Union (EU) and how that helped mortgages rates in the US because of general uncertainty and a “flight-to-safety”.
This week a new poll shows that a majority of voters now favor remaining in the EU. As a result, pricing on mortgage rates worsened very modestly this morning. The bottom line is that Thursday’s vote is up in the air. Here in the US we will learn the results after the markets closes on Thursday so to play it safe borrowers may want to lock ahead of that. If Britain does depart the EU I expect mortgage rates to remain low and maybe even improve further.
The vote in Britain will overshadow other economic news stories this week. The economic calendar is light in terms of the number of events but heavy in housing related reports. On Wednesday we’ll see existing home sales, the FHFA housing price index report, and on Thursday we’ll get new home sales. Recent housing reports have been “Goldilocks” meaning not too hot and not too cold.
Its very difficult to handicap the vote in Britain so I will favor a locking bias.
Current Outlook: locking