Melissa's Mortgage Minute
10-Year Bonds are trading down to 1.79%. I can hear all those applying for mortgages cheering, as lower yields will bring lower mortgage rates. Remember though that good news for interest rates comes at the expense of bad news for the economy...
Overnight China reported that their PMI remained in contraction for the fourteenth month in a row. Australia had a surprise rate cut and Japan teeters as the Yen continues to surge!
The Dow is now down 200 points as weak global data and falling oil prices weigh heavily. Meanwhile, oil continues to drop as rising output renewed concerns about a growing global glut. Oil is now down 2.50%. Now trading at $43.75.
The Dollar continues its free fall with the Yen, now at its highest level since 2014 and the Euro is gaining as well...Put it altogether and bonds have turned around and are rallying strongly dropping to 1.79% from 1.87% enough to help banks lower rates today.
As far as rates go 3.50% for a jumbo 30-Year fixed looks solid this morning and a 5-Year ARM at 2.50% is most enticing. Go borrow!