Mortgage rates continue to improve. We’re only about .25% off the all-time low levels reached in November of 2012.
Talk of the Swiss Franc is sweeping the financial markets today. Earlier Swiss officials announced that they would let the Swiss currency float against the Euro (previously the two currencies were “pegged”). Given that the EU is likely to engage in “quantitative easing” in the next year which tends to devalue a currency the Swiss Franc has appreciated by 30% in one day! Investors continue to flee the Euro which is helping US interest rates.
A look at the chart of yields on the US 10-year treasury note shows just how significantly rates have dropped. Since late December yields have fallen by almost .50%. Mortgage rates closely follow the US 10-year treasury. yield.
Momentum appears to be on our side. Given that we have seen such an acute move lower we have to be prepared for temporary reversals but I think applicants can continue to float.
Current Outlook: floating