Conventional rates today fell considerably today but, do you know what does effect the rates to rise and fall as they do?
The most crucial clues offset each other — Return of investment (Treasury Yield) on the government's debt obligation rose while oil prices fell. Shown below are some factors you might want to consider:
- Major stock indexes opened slightly low and flat (neutral for mortgage rates)
- Gold prices fell $8 to $1,232 an ounce. (That is not-good for rates because the change is so small. In general, it’s better for rates when gold rises, and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to push rates lower)
- Oil prices fell another $1 to $67 a barrel (that’s good for mortgage rates today, and nice to have dropped through the $70 threshold — an improvement long-term because energy prices play a large role in creating inflation)
- The yield on ten-year Treasuries fell 1 basis point (1/100th of 1 percent) to 2.86 percent. That is good for mortgage borrowers because mortgage rates tend to follow Treasuries
- CNNMoney’s Fear & Greed Index (Tool that is comprised of 7 key market indicators) remains at 46 (out of a possible 100). That is still in the “neutral” range. Normally, “fearful” investors push bond prices up (and interest rates down) as they leave the stock market and move into bonds, while “greedy” investors do the opposite
Predictions indicate for the year 2018 we should only see less than four rate hikes in 2018. So if your looking to purchase soon contact us today! And keep an eye on the markets!
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Resources: www.themortgagereports.com, www.mortgagedaily.com