Mortgage Rates

Last week, I wrote about what direction we expected mortgage rates would go once the trade tariffs were announced, and now we know. So far, the answer is down. Mortgage interest rates improved gradually throughout the week. A 30-year fixed-rate loan was about an eighth of a percent better at the end of the week. That is not a lot, but lower is better for buying houses.

Tariffs

Tariffs dominated the headlines and sent stocks plummeting. Investors moved into US Treasuries and Mortgage-Backed Securities (MBS) in a flight to safety. Mortgage interest rates generally track with the 10-year Treasuries.

As I write this early Monday morning, it looks like today is going to be a continuation of last week’s market meltdown. Will mortgage rates continue to decline? I will let you know next week.