Hopefully you took the advice on Monday to lock because mortgage rates have worsened this week.
Do you want to see a naked picture on snapchat? If so, you can see one HERE. Punny, right?
Speaking of snapchat it’s shares start trading on Wall Street today. Get yours before they disappear. Stocks continue to rally unabated. The Dow Jones Industrial Average and S&P 500 created new highs yesterday. When stocks rally it tends to hurt mortgage rates.
Headed into this week the markets had assigned a 22% probability that the Fed would hike rates at their next meeting scheduled for March 14-15. However on Tuesday San Francisco Federal Reserve President John Williams said that a rate hike was “very much on the table for serious consideration.” Despite this being as affirmative as Abe Lincoln’s famous line “I’m almost certain that is probably true” the markets are now assigning a 75% chance the Fed will hike. Reminder, the Fed DOES NOT directly control mortgage rates. Even so shameless mortgage companies will use this as bait to try and get borrowers to rush into decisions.
Do you remember this chart from a couple weeks ago? The good news is that the yield on the US 10-year treasury note, which mortgage rates tend to track, remains range bound.
The last four times times that yield has reached 2.50% they have reversed and moved lower. Assuming history repeats itself then lower mortgage rates should be available in the days to come. I recommend floating.
Current Outlook: floating