To understand today’s mortgage rates and how they are impacting the housing market, you must look at more than one source of data. The data from the various lenders might look the same, but the analysis by various experts in the mortgage sector might open your eyes on what today’s mortgage rates are like. Currently, mortgage property rates have moved stridently high as a result of various factors like current market momentum, the chaos in Ukraine and positive economic data. This momentum slowed drastically as the rates’ impressive run came to an end. The rates could have turned around and headed in the opposite direction, but thankfully they have managed to hold on steadily.
Great opportunity to lock your mortgage rates
Any bond market rally that gains strength from what is happening geopolitically relies heavily on the risks involved remaining elevated if the gains are expected to continue. It means the longer Ukraine remains stable without a civil war and political chaos, the harder it is for rates to sustain today’s improvements without an outside force benefiting from the same state of affairs. Analysts believe the improvement on mortgage rates today presents a wonderful opportunity for any borrower to lock.
In this regard, the eventual changes in bond markets that also affect the lenders’ rates followed the world headlines, suggesting solid steps had been accomplished to de-escalate military participation in Ukraine. The momentum however started turning negative due to stronger economic data. If economic reports turn out to be better than many had anticipated, the bond market is usually affected and begins to weaken, pushing the mortgage rates higher, all other variables the same.
The result was that most lender rates moved to 4.5 percent from 4.375 percent. Some lenders could still be priced competitively even at that changed rate. After adjustments of the daily changes were done, the current rates of mortgage went up by 0.06 percent.
The economic data has continued to display an improving economy that is not kind to mortgage rates. The easing of tensions in Ukraine is also not good news for rates. This is why lenders continue to accept locks and provide rate sheets even when the bond market remains closed. Experts also believe that those who have not yet locked already might already have damaged their ability to secure low rates. It is nothing new that rates usually go up just before a holiday or long weekend. People who have not locked their rates typically have the worst weekends and holidays as they wait for the bond market to open.
Once investors are certain the incoming data accurately represents the current economic conditions rates can be expected to react well. Weaker data helps to maintain low rates while strong data could raise the rates to the all time highs experienced in January 2014.
At the same time, there is a scaling back of bond purchases by the central bank as much as the purchase has bolstered the mortgage industry by ensuring the rates remain low. Support is expected to continue after reassurances from the Federal Reserve. Policy makers are predicting the economy will be able to deal with issues of unemployment completely by the end of 2016.