LIME REALTY GROUP continues to monitor the daily mortgage rate and although things haven’t changed much since we last wrote about it, there are some reasons analysts suspect this may be the case.
While much of the economic discussion in the markets has centered around the Trump election and the resulting movements in the big ticket markets, the more subtle impact on the mortgage rate is arguably the bond market. In December, there was an announcement by the FED that prompted a lower volume and lighter liquidity for US bonds in the holiday season.
Bond values started to recover as traders capitalized on this lull in growth momentum and many profited from short positions taken after the election. Others buckled in for the long haul and waited for the correction to restore value. The only question was how deep that correction would go and how long would it last.
It finally hit its ground around 2.3% and then Yellen woke the bond markets up on January 18th. Following the inauguration stocks went up and bonds moved to their worst levels of the month and in the highest volumes.
This is the environment that’s been driving trade for the past month and a half. That’s why we haven’t seen a lot of movement in the rate and there’s still no indication of much change. Of course more economic data is scheduled to come (some of it even today) and on the heels of those numbers, we could see some changes in the rate. But as of yet, the rates are still hanging just below 4%.
For buyers, it’s a great time to dip your toes in and consider jumping in the market. Contact Lime today and let us help you on your way to home ownership! Call today!