Last Week in Review: Is This the Bottom?
Home loan rates continue to hover near all-time lows, but there are three reasons why they should have improved but didn’t.
Let’s take a look at some of the “Bond-friendly” news from this week that was unable to push mortgage-backed security (MBS) prices higher and home loan rates lower.
What does this tell us? Have we reached the “bottom” in rates? Quite possibly.
Stocks ended April up 12%, the best month since the ’80s. At the same time, the 10-year Note yield, a benchmark for longer-term rates, has been unable to move convincingly beneath .60%. Both Stocks and the 10-year Note yield are forward-looking and appear, at the moment, to be ignoring the awful economic numbers that continue to roll in.
Bottom line: For those who have an opportunity to lock in a home loan rate, now is an incredible time. It’s not yet clear that once our economy starts re-opening that rates will stay near current levels. If this week was any gauge, it is suggesting they won’t.
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