Mortgage Rates at Lowest in Over a Year

Today mortgage rates dropped to their lowest in over a year.

A variety of contributors are to thank for the rate drop such as uncertain market outcomes of Brexit, The 10 year Treasury auction, and favorable economic data.

Because a deal has not been met for a compromise over Brexit, the market outcomes remain uncertain. This uncertainty is partially responsible for keeping rates low.

The 10 year treasury auction is a great way to measure how well bonds are doing. As a result of the stock market doing poorly, investors have turned to the bond market. With a high demand for bonds comes lower interest rates.

Lastly, positive economic data with regard to consumer price index means inflation was less than expected, which in turn keeps rates down.

Looking forward we want to keep an eye on the bond market since it has the largest impact on rates. Investors favoring the bond market over the stock market will determine if rates stay low or rise again.

When rates are low is the best time to consider a rate/term refinance that can save you money each month. For more information on the programs we offer, click here.

If you have any questions, fill out our contact form and a dedicated professional will reach out to you as soon as possible.