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    Home»Interest Rates»Thanks to POTUS, Mortgage Rates Drop to New 2017 Lows
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    Thanks to POTUS, Mortgage Rates Drop to New 2017 Lows

    JustinBy JustinApril 17, 2017Updated:May 9, 2017No Comments2 Mins Read
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    Thanks to POTUS, Mortgage Rates Drop to New 2017 Lows

    Mortgage rates hit new record lows this year following President Trump’s remarks over at The Wall Street Journal. His views about the dollar and interest rates pushed bonds higher and the Treasury yield to its lowest level in 2017.

    Bond prices drive mortgage rates, which follow the movement of Treasury yields.

    Get quotes from lenders.»

    The Background

    In an interview with the Journal published on April 12, the President was quoted as saying that the dollar is getting too strong. He also preferred for interest rates to stay low. The last remark could very well be a “stop” for the Federal Reserve which plans to gradually increase the fed funds rate this year given the current economic performance.

    Bond prices gained ground the day before as investors did a flight to quality after tensions broke out with North Korea. The aftermath of the Syrian gas attacks and the presidential elections in France also contributed to higher bond prices.

    Mortgage rates currently stand at 4.0% and 4.125% according to loan originators at Mortgage News Daily. It reported that a majority of lenders are quoting 4.0% for their 30-year fixed-rate conventional mortgages for “top tier scenarios” while more aggressive lenders quote as low as 3.875%.

    The 10-year Treasury yield was down on April 12 at 2.26%.

    To Lock or Float

    “This could be very meaningful and could lead to even lower rates ahead..,” Mortgage Market Guide said of the President’s recent interview. But this week’s light trading volume as financial markets are closed on Good Friday should be taken into consideration.

    If you have a lot of time in your hands and want to get confirmation of the move’s effect on rates, float your rate in the meantime.

    Otherwise, lock into the best mortgage rates that 2017 has seen so far.

    * * *

    Freddie Mac’s Primary Mortgage Market Survey is in for the week ended April 13. The average mortgage rates are:

    30-year FRM: 4.08%
    15-year FRM: 3.34%
    5-year hybrid ARM: 3.18%

    Speak with a lender today.»

    Justin
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    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.

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    bonds Freddie Mac PMMS geopolitical tensions interest rates mortgage rates Treasury yield Trump WSJ
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    Justin

    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.

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