Meet the mortgage rates for this week, which are like the mortgage rates from the previous week. Mortgage rates from the previous week were like mortgage rates the week before that.
Mortgage rates have held within a tight range through July. A quote on offer today differs little from a quote on offer three weeks ago. Upfront costs would be the differentiating factor.
Will interest rates rise or fall? The answer is “it depends.” It depends on whom you ask. Opinions are divided.
The speculators are of one opinion. Grant’s Interest Rate Observer reports that net-short positions in 10-year U.S. Treasury note futures reached a record of more than 500,000 contracts in the first week of July. These traders are betting, with conviction, that the price of the 10-year note will fall and its yield will rise.
The trade imbroglio between the political powers that be in Washington and the political powers that be in the rest of the world continues to weigh on market sentiment. Market participants remain cautious. Heightened uncertainty has kept many of them bottled up in haven investments.
U.S. Treasury securities (long-term securities in particular) remain the favored haven. Yields on the longer-end of the curve have eased. The yield on the 10-year U.S. Treasury note has drifted closer to 2.8%. The yield is down 15 basis points over the past two weeks.