At the end of May 19, Friday’s trading, mortgage rates on 30-year FRMs crept higher to 4.02%. Early last week, rates plunged at their lowest level brought by potential political repercussions surrounding the ouster of FBI Director James Comey and the current administration’s “close” ties with Russia.
Mortgage rates later reversed their lows and ended the week at the 4-percent level. They could remain on a high as more details emerge from Mr. Comey who will appear before a Senate inquiry.
Timeline of a Scandal
It all started when the President fired Mr. Comey as FBI Director on May 9. A day after, it was alleged that the President had shared highly classified information regarding an Islamic state threat with top Russian officials during one of their meetings at the Oval Office.
The President, on his personal Twitter account, later posted about hoping there be no tapes with his conversations with Mr. Comey before the latter starts talking to the press.
Sean Spicer, press secretary of the White House, repeatedly refused to answer whether the President is indeed recording conversations of his Oval Office meetings.
Mr. Comey was in the middle of a probe involving the President’s top security advisors including Michael Flynn over their ties with Russia which allegedly meddled in the U.S.’s 2016 presidential election when he was abruptly fired by the President. His dismissal has then sparked concerns that the current administration may be interfering in the Russia probe.
The former FBI Director is expected to speak up about the investigation before the Senate Intelligence Committee after Memorial Day.
What to Expect in the Coming Days
Volatility is expected between now and until Mr. Comey’s testimony (pending other major events) over investors’ concerns about the impact of the current political situation has on the current admin’s reforms, said Mortgage News Daily.
This volatility could mean a big move in mortgage rates this week. Lock your mortgage rate if you fear a big jump in rates.
Mortgage Market Guide experts also recommend locking. Stocks have stabilized and if these gains were to continue, bonds might be affected. Bond prices and mortgage rates are inversely related.
Should you have a Plan B that is a good alternative to locking, floating is an option.
Justin McHood is a managing partner at Suited Connector and has been recognized by national media outlets as a financial expert for more than a decade.