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Mortgage Rates Return to 2015 Highs

Risk is flooding back into the markets, most notably in the form of the changes in the European bond markets. After a year and a half of record lows, it would seem that things have finally turned around. Though it is still too early to know whether or not this is to be a major, long-term reversal, investors are playing it safe by dumping their bonds.

Since the European markets are connected fairly closely with US markets, this selling trend is having an effect on American mortgage rates. This is providing for a high-risk environment, and the average borrower would do well to lock in to current rates before they can jump any higher.

Rates Remain Inactive Ahead of Fed Announcement

Going into the final week of April, the mortgage market has not deviated much from the recent trend of inactivity.

This lack of significant movement in either direction can be largely attributed to the idleness in the financial markets that most strongly affect interest rates. However, this is bound to change soon. This upcoming Wednesday, we are scheduled to receive both the first quarter GDP and a highly anticipated Fed Announcement. Reports of a stronger economy could very well lead to higher rates, while a poor Fed outlook could drop rates lower.

Until these announcements occur, the mortgage market is going to be slow to move in any direction. After Wednesday, though, we can likely expect some more volatile activity.

April’s Mortgage Rates Idle

We’ve passed the midway point in April, and the outlook for the mortgage market is pretty flat. Despite volatility in underlying financial markets, mortgage rates can’t seem to get any significant momentum in either direction. As of the seventeenth, it is the third consecutive day of minimal movements in rates.

This lull in mortgage rate movements can be attributed to the mixed messages coming from Fed officials. Lenders are looking for definitive signals regarding an imminent rate hike. With this in mind, the common wisdom is to favor locking into current rates; it is entirely possible that rates will move significantly higher without departing from observed trends. Meanwhile, the market is looking forward to the FOMC Announcement on April 29th, representing the next event that presents a good chance to initiate greater movements in rates markets.