Mid Week Update – Interest Rates Hit All Time Lows

The news out of Europe has continued to fan the flames of mortgage backed securities and other US treasuries.  The Chicago PMI was released today with worse than expected results, creating yet another catalyst that could push rates lower.

The Jobs Report is still to come on Friday and could help interest rates make a push even lower.  Couple that with any more bad news out of Europe and we could see a 30 yr. fixed rate close to 3.5%.

The next Fed meeting is on June 20th.  The hot topic will be whether or not there should be further Quantitative Easing.  In the past, the bond markets have not responded well to past QE announcements, so there is a short window of opportunity leading up to the Fed meeting to lock in your rate at historic lows.

The chart below shows the “Rising Wedge” that has been created in mortgage backed securities.  A break out above the wedge would continue to paint the record books with historically low interest rates.  But we caution, a break below this wedge could come at an alarming rate causing rates to spike up without a moments notice.  Call us today to schedule a new home buyer consultation or click here to start your mortgage review!

Spread the Word

Explore your Loan Options!

If you're ready to talk to a Home Loan Expert about your loan options,
Call (972) 499-0454 now or fill out the form on the right and we'll call you!

Get Started Now

+Patrick Glaros empowers people to find their best home loan option. Through planning and education, and a goal-oriented approach, Patrick and the team at Dallas Mortgage Planners have one common goal: Help clients make an informed decision to choose the best home loan for their unique situation. Find other articles written by Patrick.

Click Here to Leave a Comment Below

Leave a Reply: