Mortgage rates took a breather this past week. Instead of ascending, as they have for most of 2018, they eased back a few basis points. The range still holds, though. Quotes on prime 30-year fixed-rate conventional mortgages remain within the 4.75%-to 4.875% range at the national level. Quotes have been more “4.75%-ish” as opposed to “4.875%-ish” in recent days.
Rate quotes on the prime 30-year loan have eased because the yield on the 10-year U.S. Treasury note has eased. The yield spiked to 3.11%, but then retreated. The yield on the 10-year note hovers around 3%. We often note that as the yield on the 10-year note goes, so go rate quotes for long-term mortgages. Such has been the case once again.
Steady as she goes. That's the headline out of the most recent meeting of the Federal Reserve's Open Market Committee, which ended earlier this month with little surprise or fanfare. The FOMC, the chief policymaking body of the Fed that holds sway over much of the global economy, elected not to raise its key interest rate, the federal funds rate. The committee also reaffirmed its expectation to continue on its previously planned course toward more incremental rate hikes for the rest of the year.
Most market pundits expected this to happen four years ago, if not earlier. They expected interest rates to rise, and rise meaningfully with sustained momentum.